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Line of Credit
3 Months Ended
Sep. 30, 2011
Line of Credit
Note 7 — Line of Credit

The Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which as amended, provides for a $4,000,000 revolving line of credit that matures on October 31, 2013.  The SVB line of credit bears interest at the prime rate plus 2% for periods in which the Company  maintains an account balance with SVB (less all indebtedness owed to SVB) of at least $800,000 at all times during the prior calendar month (the “Streamline Period”), and at the prime rate plus 4% when a Streamline Period is not in effect.  The interest rate on the line of credit was 8% as of September 30, 2011.  The line of credit is secured by all of the Company’s and its subsidiaries’ assets.   

The line of credit is subject to certain financial and performance covenants which the Company was in compliance with as of September 30, 2011.  The balance outstanding as of September 30, 2011, and June 30, 2011 was $1,082,008 and $1,436,233, respectively.  As of September 30, 2011 and June 30, 2011, approximately $273,000 and $202,000, respectively, of available credit was unused under the line of credit.