Finance Receivables

9 Months Ended

Mar. 31, 2012

2. Finance Receivables

Finance receivables include sales-type leases to accommodate extended payment terms for equipment purchases to certain customers. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. Monthly payments for the receivables are collected by deduction from our customers’ vending and equipment transaction funds. The Company recognizes a portion of the lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method.

Finance receivables consist of the following:

	March 31,		June 30,
	2012		2011
	(unaudited)
Total finance receivables	$	559,602	$	481,387
Less current portion		249,912		285,786
Non-current portion of finance receivables	$	309,690	$	195,601

As of March 31, 2012 and June 30, 2011, there was no allowance for credit losses of finance receivables. As the Company collects monthly payments of the receivables from the customers’ transaction funds the risk of loss was determined to be remote.

Credit Quality Indicators
As of March 31, 2012

Credit risk profile based on payment activity:
	Leases

Performing	$	559,602
Nonperforming		-
Total	$	559,602

Age Analysis of Past Due Finance Receivables

As of March 31, 2012


	31 – 60		61 – 90		Greater than						Total
	Days Past Due		Days Past Due		90 Days Past Due		Total Past Due		Current		Finance Receivables

Finance Receivables		-		-		-		-	$	559,602	$	559,602
Total	$	-	$	-	$	-	$	-	$	559,602	$	559,602