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Line of Credit
6 Months Ended
Dec. 31, 2012
Line Of Credit Facility [Abstract]  
Line Of Credit Facility Disclosure [Text Block]

Note 3 — Line of Credit

 

The Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which as amended, provides for a $4,000,000 revolving line of credit that matures on October 31, 2013.  On February 8, 2012, the Company entered into an Amendment to the Loan and Security Agreement pursuant to which SVB waived our failure to comply with the minimum tangible net worth financial covenant set forth in the Loan Agreement for the compliance period ended December 31, 2011, the parties agreed to amend the minimum tangible net worth required for various periods in calendar year 2012, and the parties agreed that the principal amount outstanding under the revolving line shall accrue interest at the prime rate plus 2.5% for periods in which the Company maintains an account balance with SVB (less all indebtedness owed to SVB) of at least $800,000 at all times during the prior calendar month (the “Streamline Period”), and at the prime rate plus 4.5% when a Streamline Period is not in effect. The interest rate on the line of credit was 6.5% as of December 31, 2012.  The line of credit is secured by all of the Company’s and its subsidiaries’ assets, excluding TAAG’s assets.  

 

The line of credit is subject to certain financial and performance covenants which the Company was in compliance with as of December 31, 2012.  The balance outstanding as of December 31, 2012, and June 30, 2012 was $100,000 and $1,000,000, respectively.  As of December 31, 2012 and June 30, 2012, approximately $3,700,000 and $1,875,000, respectively, of available credit was unused under the line of credit.