9. Bank Credit Line

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Bank Credit Line

On April 10, 2012 Zoom Telephonics, Inc. entered into a Loan and Security Agreement with Silicon Valley Bank (the “Loan Agreement”). This Loan Agreement was filed with the SEC in an 8-K dated April 13, 2012. The Loan Agreement provides for up to $1 million of revolving credit, subject to a borrowing base formula and other terms and conditions as specified in the Loan Agreement.  The  Company’s most recent charge for the month of June was an annualized interest rate of 9%, but this may increase depending on Zoom’s balance sheet as specified in the Loan Agreement. Our outstanding bank debt at June 30, 2012 was $526,000.  The Loan Agreement has a one year term which expires April 9, 2013. Borrowings are secured by all of Zoom’s assets including Zoom’s intellectual property. The Loan Agreement contains several convenants, including a requirement that Zoom maintain a tangible net worth of at least $3.0 million.