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Indebtedness
6 Months Ended
Feb. 28, 2013
Indebtedness  
Indebtedness

5. Indebtedness

 

In January 2013, the Company entered into a NT dollar-denominated long-term credit facility providing for approximately $4.1 million of borrowing capacity. The term of each draw down is three years and interest is calculated at a variable rate based on the annual time deposit rate plus an annual rate of 0.63%. The credit facility is secured by the Company’s manufacturing equipment. As of February 28, 2013, the Company had drawn down $1.8 million, which requires monthly payments of principal and interest in the amount of $51 thousand with final payment to occur in February 2016. The interest rate on the outstanding balance under the facility was 2.0% per annum as of February 28, 2013.