NOTE RECEIVABLE	6 Months Ended
Dec. 31, 2012
NOTE RECEIVABLE	NOTE 4. NOTE RECEIVABLE On December 8, 2009, the Company entered into a $500,000 Principal 8% Per Year Senior Secured Convertible Note with Tracciare, Inc. with an original maturity date of May 31, 2011. In addition, the Company received a warrant to purchase up to eighty percent of Tracciare’s equity for a total price of $500,000. In March 2011, the note was amended to extend the maturity date to June 30, 2013. At December 31, 2012, Tracciare, Inc. had drawn all of the $500,000 note, along with additional fundings in the amount of $833,941 all under separate notes with the same terms and agreements as the original note and amendment. The $1,542,800 note receivable balance at December 31, 2012 includes $208,859 of accrued interest receivable. Beginning in May 2012 PHAZAR CORP significantly decreased the amount of funding that it provided to Tracciare under the notes. PLAZAR CORP envisions that it will provide very little additional capital to Tracciare in the future. Given Tracciare’s cash requirements and lack of a forseeable source of capital for Tracciare, PHAZAR CORP finds it highly unlikely that it will recover any significant amount on the note receivable when it comes due on June 30, 2013. As a result, as of December 31, 2012, the collectability of the note receivable is unlikely and management has provided a $1,516,338 impairment reserve against the note receivable.

NOTE RECEIVABLE

6 Months Ended

Dec. 31, 2012

NOTE 4. NOTE RECEIVABLE

On December 8, 2009, the Company entered into a $500,000 Principal 8% Per Year Senior Secured Convertible Note with Tracciare, Inc. with an original maturity date of May 31, 2011. In addition, the Company received a warrant to purchase up to eighty percent of Tracciare’s equity for a total price of $500,000. In March 2011, the note was amended to extend the maturity date to June 30, 2013. At December 31, 2012, Tracciare, Inc. had drawn all of the $500,000 note, along with additional fundings in the amount of $833,941 all under separate notes with the same terms and agreements as the original note and amendment. The $1,542,800 note receivable balance at December 31, 2012 includes $208,859 of accrued interest receivable.

Beginning in May 2012 PHAZAR CORP significantly decreased the amount of funding that it provided to Tracciare under the notes. PLAZAR CORP envisions that it will provide very little additional capital to Tracciare in the future. Given Tracciare’s cash requirements and lack of a forseeable source of capital for Tracciare, PHAZAR CORP finds it highly unlikely that it will recover any significant amount on the note receivable when it comes due on June 30, 2013. As a result, as of December 31, 2012, the collectability of the note receivable is unlikely and management has provided a $1,516,338 impairment reserve against the note receivable.