Note 8 - Debt

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

8

:   Debt

Debt is comprised of the following (in thousands):

	3/31/2017		6/30/2016
Notes payable and current maturities of long term debt
Loan and Security Agreement	$	1,596	$	1,543
Long-term debt
Loan and Security Agreement		15,904		17,109
	$	17,500	$	18,652

The Company amended its Loan and Security Agreement, which includes a Line of Credit and a Term Loan, in

January

2015

with changes that took effect on

April

25,

2015.

  Borrowings under the Line of Credit

may

not exceed

$23.0

million.  The Line of Credit expires on

April

30,

2018

and has an interest rate of LIBOR plus

1.5%.

  The effective interest rate on the Line of Credit under the Loan and Security Agreement for the

nine

months ended

March

31,

2017

and

2016

was

2.5%

and

2.2%,

respectively. Based upon its

three

year term, the Line of Credit has been classified as long term. As of

March

31,

2017,

$9.4

million was outstanding on the Line of Credit.

On

November

22,

2011,

in conjunction with the Bytewise acquisition, the Company entered into a

$15.5

million term loan (the “Term Loan”) under the then existing Loan and Security Agreement.  The Term Loan is a

ten

year loan bearing a fixed interest rate of

4.5%

and is payable in fixed monthly payments of principal and interest of

$160.6

thousand.  The Term Loan had a balance of

$8.1

million at

March

31,

2017.

The material financial covenants of the amended Loan and Security Agreement are:

1)

funded debt to EBITDA, excluding non-cash and retirement benefit expenses (“maximum leverage”), not to exceed

2.25

to

1.2)

annual capital expenditures not to exceed

$15.0

million,

3)

maintain a Debt Service Coverage Rate of a minimum of

1.25

to

1

and

4)

maintain consolidated cash plus liquid investments of not less than

$10.0

million at any time.  The Company was in compliance with all debt covenants as of

March

31,

2017.