XML 21 R10.htm IDEA: XBRL DOCUMENT v3.4.0.3
DUE FROM FACTOR
 9 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
DUE FROM FACTOR

NOTE 5. DUE FROM FACTOR

 

On September 9, 2015, we entered a Loan and Security Agreement (the “Summit Loan”) with Summit Financial Resources LP, (the “Factor”) whereby we can borrow up to $1.0 million against our eligible receivables, on a revolving basis, as defined in the agreement. Borrowed funds will bear interest at a rate of prime plus 2 percent, and incur an additional administrative fee of 0.7 percent on the monthly average outstanding balance. The Summit Loan has an initial period of 18 months with successive one year renewal options and requires an annual facility fee of $10,000.

 

As of March 31, 2016, the total amount of receivables that have been assigned to the Factor pursuant to the Summit Loan is $1.6 million and we bear the risk of loss in the event of non-payment by the customers. During the three and nine months ended March 31, 2016, we borrowed $450,000 and $2.1 million, on a revolving basis, respectively, under the Summit Loan, which amounts were paid in full by March 31, 2016. Therefore, at March 31, 2016, we had no outstanding borrowings against the Summit Loan.