LONG-TERM DEBT

3 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT

8. LONG-TERM DEBT

CAPITAL LEASES

The company periodically enters into capital lease obligations to finance certain office and network equipment for use in its daily operations. During the three-month period ended September 30, 2015 the company entered into capital lease obligations of $35 thousand. The interest rates on these obligations were approximately 5.60%. The value of the acquired equipment is included in property and equipment and amortized accordingly.

OTHER LOAN AGREEMENTS

The company periodically enters into other loan agreements to finance the purchase of various assets as needed, including computer equipment, insurance premiums, network equipment and software for use in its operations. During the three-month period ended September 30, 2015, the company entered into loan agreements for $103 thousand. The interest rates on these obligations were approximately 5.27%. The value of these financed insurance premiums acquired is included in prepaid expenses and other assets and expensed accordingly.

ASSIGNMENT OF QUICKSTART LEASES

In February and May 2015, the Company assigned its interest in certain finance receivables (various sixty-month QuickStart leases) to third-party finance companies in exchange for cash and the assumption of financing obligations in the aggregate of $1.8 million and $304 thousand, respectively. These assignment transactions contain recourse provisions for the Company which requires the proceeds from the assignment to be treated as long-term debt. The financing obligations range in rate from 9.41% to 9.45%.

The balance of long-term debt as of September 30, 2015 and June 30, 2015 are shown in the table below.

($ in thousands)	September 30, 2015		June 30, 2015
	(unaudited)
Capital lease obligations	$	332	$	338
Other loan agreements		92		-
Lease financing obligations		1,917		1,994
		2,341		2,332
Less current portion		583		478
	$	1,758	$	1,854

The maturities of long-term debt for each of the fiscal years following September 30, 2015 are as follows:

($ in thousands)
2016 (remaining nine months)	$	460
2017		513
2018		500
2019		487
2020		374
Thereafter		7
	$	2,341