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Debt
6 Months Ended
Sep. 30, 2011
Debt 
Debt

6.              Debt

 

To help finance the acquisition of Apex Laboratories, Inc., SGM Biotech, Inc., and the related building that houses the SGM Biotech facility, the Company entered into a credit facility consisting of a 36 month reducing line of credit for $3,000,000 and maturing at April 27, 2013, which had a remaining principal balance of $2,000,000 at September 30, 2011, and a revolving line of credit for $4,000,000 maturing on December 23, 2011. $2,000,000 of the revolving line was paid in the current quarter and $2,000,000 is still being utilized as of September 30, 2011.  The 36 month reducing line of credit requires quarterly principal payments of $250,000 beginning July 27, 2010 through maturity. In December 2010, the bank deferred the January 27, 2011 payment of $250,000 until maturity at April 27, 2013, which allowed the Company to complete the acquisition of Apex Laboratories, Inc. without further alteration of its existing credit facility. Both of these lines of credit are subject to a variable rate of interest and a rate floor, both of which were 3.25% at September 30, 2011.  Both of these lines of credit also require monthly interest payments, are subject to restrictive covenants and are secured by most of the assets of the Company.   The Company was in compliance with the restrictive covenants as of September 30, 2011.  Currently, the Company has sufficient funds to repay the remaining revolving line of credit of $2,000,000 and expects to do so by maturity.

 

Future maturities on debt are as follows:

 

Fiscal Year 2012

 

2,500,000

 

Fiscal Year 2013

 

1,000,000

 

Fiscal Year 2014

 

500,000

 

 

 

$

4,000,000