Unearned Grant Funds

12 Months Ended

Jun. 30, 2012

Unearned Grant Funds

Unearned Grant Funds

Note 9.  Unearned Grant Funds

In July 2004, the Company received $500 of grant funding from the Commonwealth of Pennsylvania, acting through the Department of Community and Economic Development.  The grant funding program required the Company to use the funds for machinery and equipment located at their Pennsylvania locations, hire an additional 100 full-time employees by June 30, 2006, operate its Pennsylvania locations a minimum of five years and meet certain matching investment requirements.  If the Company failed to comply with any of the requirements above, the Company would be liable to repay the full amount of the grant funding.  The Company has recorded the unearned grant funds as a liability until the Company complies with all of the requirements of the grant funding program. As of June 30, 2011, the Company reached a formal agreement with the Commonwealth of Pennsylvania which determined that the Company will be required to repay $90 of the funds provided under the grant funding program.  Therefore, during the fourth quarter of fiscal year 2011, the Company recorded $410 of the grant funds as Grant Income.