LINE OF CREDIT

3 Months Ended

Sep. 30, 2015

Line Of Credit Facility [Abstract]

LINE OF CREDIT

7. LINE OF CREDIT

On July 10, 2012, the Company entered into a Loan and Security Agreement and other ancillary documents (the “Loan Agreement”) with a commercial bank (the “Bank”), which, as amended, provides for a secured line of credit of up to $7 million, secured by substantially all of the Company’s assets, until August 17, 2017. The outstanding balance of the amounts advanced under the line of credit will bear interest at 2% above the prime rate as published in The Wall Street Journal or 5% whichever is higher.

The Loan Agreement contains customary affirmative and negative covenants, including achieving a minimum Adjusted EBITDA and minimum liquidity, and customary events of default.

In connection with the Bank extending the Line of Credit, in January 2013, the Company issued to the Bank warrants to purchase up to 45,000 shares of common stock of the Company at any time prior to December 31, 2017 at an exercise price of $2.10 per share. The fair value of the warrants of $56 thousand was amortized as interest expense in the two fiscal years ended through June 30, 2014.

The balance due on the Line of Credit was $4.0 million at September 30, 2015 and June 30, 2015. At September 30, 2015, $3.0 million was available under the Line of Credit.

	As of or Three Months Ended September 30,
($ in thousands)	2015			2014
Balance at period-end	$	4,000		$	5,000
Maximum amount outstanding at any month end	$	4,000		$	5,000
Average balance outstanding during the period	$	4,000		$	5,000
Weighted-average interest rate:
As of the period-end		5.25	%		5.25	%
Paid during the period		5.25	%		5.25	%

Interest expense on the line of credit was approximately $54 thousand and $66 thousand during each of the three months ended September 30, 2015 and 2014, respectively.