Notes Payable

In December 2012, the Company drew down $220,000 from its revolving loan agreement to fund a portion of the purchase price of the acquisition of PDC. As of July 31, 2013, there was $39,000 outstanding on this revolving loan agreement. During the six months ended January 31, 2014, the Company repaid $30,000 of the borrowing and the Company intends to repay the remainder of the borrowing within 12 months of the current period end. As such, the borrowing is classified as "Notes payable" within current liabilities on the condensed consolidated balance sheets. During the six months ended January 31, 2014, the maximum amount outstanding on the revolving loan agreement was $39,000. As of January 31, 2014, the outstanding balance on the credit facility was $9,000 and there was $291,000 available for future borrowing, which can be increased to $441,000 at the Company's option, subject to certain conditions.

In February 2013, the Company entered into a USD-denominated line of credit facility in the People's Republic of China. The facility supports USD-denominated borrowing to fund working capital and operations for the Company's Chinese entities. During the six months ended January 31, 2014, the maximum amount outstanding was $14,946 which was the balance outstanding at January 31, 2014. As of January 31, 2014, there was $11,254 available for future borrowing under this credit facility.

As of January 31, 2014, borrowings on the revolving loan agreement and China credit facility were as follows:



	Interest Rate		January 31, 2014
USD-denominated borrowing on revolving loan agreement	1.2430	%	$	9,000
USD-denominated borrowing on China line of credit	1.4800	%	14,946
Notes payable	1.3615	%	$	23,946