. DEBT

Debt is comprised of the following (in thousands):

	June 30, 201 9		June 30, 201 8
Short-term and current maturities
Loan and Security Agreement	$	1,765	$	1,688
Other		2,300		1,967
Long-term debt
Loan and Security Agreement, net of current portion		17,541		17,307
Total debt	$	21,606	$	20,962

Future maturities of debt are as follows (in thousands):

Fiscal Year
2020		4,065
2021		16,746
2022		795
2023		-
2024		-
Thereafter		-
Total	$	21,606

The Company completed the negotiations for an amended Loan and Security Agreement, which includes a Line of Credit and a term loan, and executed the new agreement as of

January 30, 2018

in order to extend the maturity date of the Line of Credit. Borrowings under the Line of Credit

may

not

exceed

$23.0

million. The maturity date is now

April 30, 2021

and it has an interest rate of LIBOR plus

1.5%.

The effective interest rate under the agreement for fiscal

2019

was

4.08%.

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

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

2.25

) annual capital expenditures cannot exceed

$15.0

million;

) maintain a Debt Service Coverage Rate of a minimum of

1.25

and

) maintain consolidated cash plus liquid investments of

not

less than

$10.0

million at any time. As of

June 30, 2019,

the Company was in compliance with all the covenants. The Company expects to be able to meet the covenants in future periods.

November 22, 2011,

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

$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

$160,640.

As of

June 30, 2019,

$4.4

million of the term loan was outstanding.

Availability under the Line of Credit is subject to a borrowing base comprised of accounts receivable and inventory. The Company believes that the borrowing base will consistently produce availability under the Line of Credit in excess of

$23.0

million. As of

June 30, 2019,

the Company had borrowings of

$14.9

million under this facility. A

0.25%

commitment fee is charged on the unused portion of the Line of Credit.

The Company has

one

standby letter of credit totaling

$0.9

million which reduces the

$23.0

million available Line of Credit to

$22.1

million. As of

June 30, 2019,

the Company has approximately

$7.2

million available on the Line of Credit.

The obligations under the Credit Facility are unsecured. In the event of certain triggering events, such obligations would become secured by the assets of the Company’s domestic subsidiaries. A triggering event occurs when the Company fails to achieve any of the financial covenants noted above in consecutive quarters.

December 2017,

the Company’s Brazilian subsidiary entered into

two

short-term loans with local banks in order to support the Company’s strategic initiatives. The loans backed by the entity’s US dollar denominated export receivables were made with Santander Bank and Bradesco Bank and totaled

$3.5

million. The Santander loan of

$1.5

million had a term of

180

days and a rate of

4.19%

and the Bradesco loan of

$2.0

million had a term of

360

days and a rate of

4.75%.

The Santander loan was paid off in fiscal year

2018.

March 2019,

the Company’s Brazilian subsidiary again refinanced the

$1.3

million balance on the Bradesco loan splitting the amount between Bradesco, and Santander. The new Santander loan of

$0.8

million is due in

February 2020

and has a rate of

5.3%

and the new Bradesco loan of

$0.5

million in due in

March 2020,

and has a rate of

4.27%.

April 2019

the Brazilian subsidiary refinanced the Bradesco loan for

$1.0

million due

April 2020

at rate of

4.0%.

As of

June 30, 2019,

the outstanding balance of all Brazilian loans was

$2.3

million.

Brazil also has an unused line of credit of

$0.5

million at

June 30, 2019.