Bank Line of Credit

3 Months Ended

Sep. 30, 2011

Bank Line of Credit

Bank Line of Credit

Note 7. Bank Line of Credit

The Company has a $3,000,000 line of credit from Wells Fargo, N. A., formerly Wachovia Bank, N.A. (“Wells Fargo”) that bears interest at the prime interest rate less 0.25% (3.0% at September 30, 2011 and June 30, 2011, respectively). Availability under the line of credit is reduced by outstanding letters of credit totaling $5,000 at September 30, 2011 and June 30, 2011.  As of September 30, 2011 and June 30, 2011, the Company had $995,000 and $2,995,000, respectively, of availability under this line of credit.  The availability fee on the unused balance of the line of credit is 0.375%.  The line of credit is collateralized by the working capital assets of the Company.  As of September 30, 2011, the Company was in compliance with the financial covenants under the agreement. The line of credit expires on March 31, 2012.