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LONG-TERM DEBT

12 Months Ended

Jun. 30, 2015

8. 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 12 month periods ended June 30, 2015, 2014, and 2013, the company entered into capital lease obligations of $108,000, $325,000 and $108,000, respectively. The interest rates on these obligations range from 4.89% to 13.88%. The value of the acquired equipment is included in property and equipment and depreciated accordingly.

The balances of the capital lease obligations as of June 30, 2015 and 2014 and the related future obligations are shown in the table below.

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 daily operations. During the twelve-month periods ended June 30, 2015, 2014 and 2013, the company entered into capital lease obligations of $108,000, $325,000, and $108,000, respectively. The interest rates on these obligations range from approximately 4.9% to 13.9%. The value of these financed assets acquired is included in property and equipment or other assets and depreciated accordingly.

The balances of the other loan agreements as of June 30, 2015 and 2014 and the related future obligations is shown in the table below.

ASSIGNMENT OF QUICKSTART LEASES

In February 2015 and May 2015, the Company assigned its interest in certain finance receivables (various 60 month QuickStart leases) to a third party finance company in exchange for cash and the assumption of financing obligations in the aggregate of $1,752,717 and $304,008, respectively. The assignment transaction contains 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 9.41% to 9.45%.

The balance of the financing obligations is shown in the table below.

	June 30,		June 30,
	2015		2014

Capital lease obligations	$	337,597	$	414,525
Other loan agreements		-		8,251
Lease financing obligations		1,994,349		-
		2,331,946		422,776
Less current portion		477,522		172,911
	$	1,854,424	$	249,865

The maturities of long-term debt for each of the fiscal years following June 30, 2015 are as follows:

2016	$	477,522
2017		502,749
2018		488,929
2019		486,928
2020		371,237
Thereafter		4,581
	$	2,331,946