BANK FINANCING ACTIVITIES

6 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

BANK FINANCING ACTIVITIES

3. 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 “Revolver”), which was increased to $500,000 effective May 17, 2022 and $1,250,000 effective June 2, 2023. Borrowings under the Revolver are limited by the borrowing base comprised of a percentage of accounts receivable and inventory and secured by all assets of the Company. Borrowings under the Revolver will 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 Revolver are due upon demand. At December 31, 2023 the Revolver was unutilized and fully available to the Company.

Long-Term Debt

Long-term debt consists of the following at December 31, 2023:

	Amount
Term Loan Note payable to Main Street Bank with monthly principal payments of $30,952.38 plus interest at a fixed rate of 7.0% per annum. Secured by all assets of the Company, and subject to certain periodic reporting to the bank and other conditions including an annual minimum EBITDA plus stock-based compensation to debt service coverage ratio of 1.20:1 commencing with the fiscal year ending June 30, 2023. The Term Loan Note matures on October 15, 2028.	$	1,795,238
Permanent Working Capital Loan payable to Main Street Bank with monthly principal payments of $12,500 plus interest at a fixed rate of 8.625% per annum. Secured by all assets of the Company, and subject to certain periodic reporting to the bank and other conditions including an annual minimum EBITDA plus stock-based compensation to debt service coverage ratio of 1.20:1 commencing with the fiscal year ending June 30, 2023. The Permanent Working Capital Loan matures on June 15, 2028.		675,000
Less current maturities		(513,259	)
Less debt issuance costs, net of accumulated amortization of $10,275		(37,629	)
Long-term debt, net of current maturities and debt issuance costs	$	1,919,350

At December 31, 2023 principal payments due on the Term Loan Note payable are as follows:

Fiscal Year Ending June 30:
2024	$	256,630
2025		513,259
2026		513,259
2027		513,259
2028		513,259
Thereafter		160,573
	$	2,470,238