XML 30 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTES PAYABLE AND LONG-TERM DEBT
9 Months Ended
Mar. 31, 2013
NOTES PAYABLE AND LONG-TERM DEBT [Abstract]  
NOTES PAYABLE AND LONG-TERM DEBT
NOTE 6 - NOTES PAYABLE AND LONG-TERM DEBT

Effective April 30, 2013, the Company executed a Credit Agreement (the "Restated Credit Agreement") with Wells Fargo, National Association (the "Bank") which extends the maturity date of the Credit Agreement executed on July 15, 2010 ("Prior Agreement") from July 15, 2014 to July 15, 2015 and reduces the line from $5 million to $200,000. The Company's Restated Credit Agreement with the Bank provides for a two-year, cash-collateralized $200,000 line of credit facility, the proceeds of which may be utilized for: (i) working capital, (ii) capital expenditures and (iii) letters of credit (up to $200,000). As of March 31, 2013, the Company had no outstanding borrowings and $108 thousand in letters of credit outstanding. The Company did not borrow any amounts under the Prior Agreement as a result of its strong cash position and lack of need for borrowings.

Borrowings bear interest at either (i) a fluctuating rate per annum equal to LIBOR plus a margin of 250 basis points or (ii) at the Company's option, a fixed rate for a 30, 60, or 90 day period set at the option date's LIBOR plus a margin of 250 basis points. Any outstanding revolving loans, and accrued and unpaid interest, will be due and payable on July 15, 2015, the maturity date set under the Restated Credit Agreement. The Company pays a fee of 0.2% per annum on the unused amount of the line of credit. We estimate that the interest rate applicable to the borrowings under the Restated Credit Agreement would be approximately 2.8% as of March 31, 2013.

The Restated Credit Agreement also contains customary events of default. Upon the occurrence of an event of default that remains uncured after any applicable cure period, the lender's commitment to make further loans may terminate and the Company may be required to make immediate repayment of all indebtedness to the lender.