Notes Payable

12 Months Ended

Jul. 31, 2014

Notes Payable [Abstract]

Notes Payable

Note 9—Notes Payable

The Company’s notes payable consist of the following:

July 31 (in thousands)	2014			2013
$11.0 million secured term loan due September 2015 (a)	$	6,624		$	6,880
$1.2 million note due June 2012 (b)		—			279
Total notes payable		6,624			7,159
Less current portion		(271	)		(535	)
Notes payable—long term portion	$	6,353		$	6,624

The future principal payments for the note payable as of July 31, 2014 are as follows:

(in thousands)
Year ending July 31:
2015	$	271
2016		6353
2017		—
2018		—
2019		—
Thereafter		—
Total notes payable	$	6,624

(a)

The loan bears interest at the rate of 5.6% per annum and is payable in monthly installments of principal and interest of $0.1 million, with the last installment of $6.4 million payable on September 1, 2015. The loan is secured by a mortgage on a building in Piscataway, New Jersey.

(b)

On June 24, 2009, the Company issued a promissory note in the principal amount of $1.2 million in connection with the acquisition of the 49% interest in Union Telecard Alliance, LLC that it did not own. The note incurred interest at 0.76% per annum. The principal and interest were payable in thirty six equal, monthly installments that began on July 24, 2009 with the last payment scheduled for June 24, 2012. The Company had not made any payments since November 2011 due to disputes with the seller. In fiscal 2014, in accordance with an arbitration award, the Company paid the remaining principal and accrued interest to the seller.