BANK FINANCING ACTIVITIES

6 Months Ended

Dec. 31, 2021

Bank Financing Activities

BANK FINANCING ACTIVITIES

4. BANK FINANCING ACTIVITIES

Bank Line of Credit

On October 4, 2021, the Company entered into a Loan Agreement with Main Street Bank of Marlborough, Massachusetts, which provided for a $2,600,000 Term Loan and a $250,000 Revolving Line of Credit Loan Facility. The $250,000 line of credit is due on demand and had zero borrowings outstanding at December 31, 2021. Borrowings under the line of credit bear interest payable monthly at the prime lending rate plus 1.5% per annum and shall not be less than 4.75% per annum. Borrowings under the line of credit are limited to the borrowing base comprised of a percentage of accounts receivable and inventory and are secured by all the assets of the Company.

Long-Term Debt

Long-term debt consists of the following at December 31, 2021:

	Amount
Term Loan Note payable to Main Street Bank with monthly principal payments of $30,952.38 plus interest at the prime lending rate plus 1.5% per annum. Secured by all assets of the Company, and subject to certain periodic reporting to the bank, an annual minimum debt service coverage ratio of 1.20:1, and other conditions. The Term Loan Note matures on October 15, 2028.	$	2,538,095
Less current maturities		(367,714	)
Less debt issuance costs, net of accumulated amortization of $3,404		(25,381	)
Long-term debt, net of current portion of debt issuance costs	$	2,145,000

At December 31, 2021 principal payments due on the Term Loan Note payable are as follows: 

Fiscal Year Ending June 30:
2021	$	185,714
2022		371,429
2023		371,429
2024		371,429
2025		371,429
Thereafter		866,665
	$	2,538,095