XML 23 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
LINE OF CREDIT
12 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
LINE OF CREDIT

NOTE G - LINE OF CREDIT

 

The Company has a $250,000, due-on-demand line of credit with a financial institution, collateralized by the Company’s inventory of $688,691 and net accounts receivable assets of $538,202. The line of credit is renewable annually in April. The Chief Executive Officer of the Company personally guaranteed the line of credit to the Company. At June 30, 2016, and 2015, respectively the Company owed $125,000 and $80,000 respectively on the line of credit. Interest expense for the years ended June 30, 2016 and 2015 was $4,466 and $200 respectively. The line of credit extends terms of cash advances at a variable rate set equal to the banks prime rate at the time of advance. The interest rate (4.50% at June 30, 2016) can fluctuate according to the bank changes in its published prime rate.