LONG-TERM DEBT

9 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

9. 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 nine-month period ended March 31, 2016 the Company entered into capital lease obligations of $444 thousand. The interest rates on these obligations ranged from approximately 5.6% to 9.0%. 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 nine-month period ended March 31, 2016, the Company entered into loan agreements for $103 thousand. The interest rates on these obligations were approximately 5.3%. 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 9.4% to 9.5%.

The balance of long-term debt as of March 31, 2016 and June 30, 2015 are shown in the table below.

	March 31,		June 30,
($ in thousands)	2016		2015
	(unaudited)
Capital lease obligations	$	667	$	338
Other loan agreements		12		-
Lease financing obligations		1,688		1,994
		2,367		2,332
Less current portion		625		478
	$	1,742	$	1,854

The maturities of long-term debt for each of the fiscal years following March 31, 2016 are as follows:

2016 (remaining three months)	$	157
2017		631
2018		628
2019		588
2020		358
Thereafter		5
	$	2,367