Note 7. Line of Credit	9 Months Ended
Mar. 31, 2015
Notes
Note 7. Line of Credit	NOTE 7. LINE OF CREDIT Until March 2015, we maintained a line of credit with a bank. In March 2015, we moved the line of credit to a new lender. The terms of the new credit facility are not as favorable as the previous bank line of credit. Under the agreement with the new lender, the effective interest rate on borrowed money is approximately 10% including interest and origination fees. Interest on the new line of credit is prime rate plus 5%. The borrowing base on the new line of credit is approximately $2,700,000 and like the bank line of credit is secured by accounts receivable and inventory. Borrowing limitations under the new line of credit are based on 85% of eligible accounts receivable and $700,000 of eligible inventory, up to a maximum credit facility of $3,000,000. Interest payments on the line are due monthly. All borrowings under the line of credit are presented as current liabilities in the accompanying consolidated balance sheet. The new line of credit matures on March 5, 2016. The outstanding balance on our lines of credit decreased $1,642,132 to $1,879,077 as of March 31, 2015, compared to $3,521,209 as of June 30, 2014. This reduction was made possible by the sale and leaseback of our Cottonwood Heights, Utah facilities in which we generated approximately $2,100,000 in net cash to pay down our line of credit. We believe that amounts available under the new line of credit as well as cash generated from operating activities will continue to be sufficient to meet our annual operating requirements.

Note 7. Line of Credit

9 Months Ended

Mar. 31, 2015

NOTE 7. LINE OF CREDIT

Until March 2015, we maintained a line of credit with a bank. In March 2015, we moved the line of credit to a new lender. The terms of the new credit facility are not as favorable as the previous bank line of credit. Under the agreement with the new lender, the effective interest rate on borrowed money is approximately 10% including interest and origination fees. Interest on the new line of credit is prime rate plus 5%. The borrowing base on the new line of credit is approximately $2,700,000 and like the bank line of credit is secured by accounts receivable and inventory. Borrowing limitations under the new line of credit are based on 85% of eligible accounts receivable and $700,000 of eligible inventory, up to a maximum credit facility of $3,000,000. Interest payments on the line are due monthly. All borrowings under the line of credit are presented as current liabilities in the accompanying consolidated balance sheet. The new line of credit matures on March 5, 2016.

The outstanding balance on our lines of credit decreased $1,642,132 to $1,879,077 as of March 31, 2015, compared to $3,521,209 as of June 30, 2014. This reduction was made possible by the sale and leaseback of our Cottonwood Heights, Utah facilities in which we generated approximately $2,100,000 in net cash to pay down our line of credit.

We believe that amounts available under the new line of credit as well as cash generated from operating activities will continue to be sufficient to meet our annual operating requirements.