Bank Line of Credit

9 Months Ended

Mar. 31, 2012

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 Bank, N.A. (“Wells Fargo”) that was scheduled to expire on March 31, 2012.  The line of credit was renewed and extended until April 30, 2013 and bears interest of 1-month LIBOR Market Index Rate plus 2.00% (2.24% at March 31, 2012).  Availability under the line of credit is reduced by outstanding letters of credit totaling $5,000 at March 31, 2012 and June 30, 2011.  As of March 31, 2012 and June 30, 2011, the Company had $2,995,000 of availability under the 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 March 31, 2012, the Company was in compliance with the financial covenants under the agreement.