XML 25 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTES RECEIVABLE
12 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 5. NOTES RECEIVABLE


As of June 30, 2018, the Company held a note receivable with a principal amount of $234,000, of which $35,000 is included in current assets and $199,000 is classified as long term. The note is with an unrelated third party, has an annual interest rate of 15 percent and matures in 2021. This note was amended in November 2016. Upon amendment, the maturity date was extended from 2017 to 2021, unpaid interest was added to the principal, and provisions for penalty interest were added for failure to make scheduled interest or principal payments or failure to provide timely financial statements. Principal repayments on the note are scheduled to start in February 2019. The Company considered the credit quality of the other party and determined that no allowance for credit loss is necessary.


The Company had also entered into a promissory note with a principal amount of $2 million with an unrelated third party in June 2016 with a one-year maturity. As allowed by the agreement, in June 2017, the initial maturity was extended one-year to June 2018, and the Company received a $50,000 extension fee and all interest to date. The fee was amortized to interest income using the interest method over the remaining term of the note. The note bore interest at 12 percent, with 10 percent payable monthly and 2 percent payable at maturity. This promissory note was paid off in May 2018, prior to its scheduled maturity in June 2018. Proceeds were received for the principal and all accrued interest, and no gain or loss was realized.