Line of Credit

9 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Line of Credit

On June 29, 2018, the Company entered a business loan agreement with TD bank receiving a line of credit evidenced by a promissory note of $250,000. The interest is subject to change based on changes in an independent index which the Wall Street Journal Prime. The index rate at the date of the agreement is 5.0% per annum. Interest on the unpaid principal balance of the note is calculated using a rate of 0.74 percentage points over the index, adjusted if necessary for any minimum and maximum rate limitations, resulting in an initial rate of 5.74% per annum based on a year of 360 days. The interest rate was 8.24% as of March 31, 2023. The Company was required to put $250,000 in the TD bank savings account as collateral. The Loan is guaranteed by Mr. DePiano Jr.

As of June 30, 2022, the line of credit balance was $201,575 with TD bank. The line of credit interest expense was approximately $4,000 and $3,000 for the three months ended March 31, 2023 and 2022, respectively. The line of credit interest expense was approximately $11,000 and $8,000 for the nine months ended March 31, 2023 and 2022, respectively. TD bank elected to exercise the term note conversion option to convert the loan balance of $201,575 to a five-year term note effective March 29, 2023 ("the Conversion Date"). The scheduled monthly principal and interest payments in the amount of $4,247 began on April 29, 2023. Commencing on the Conversion Date, the aggregate principal balance outstanding bears interest at a fixed per annum rate of 9.49% pursuant to the loan's terms and conditions. $168,313 was reported as long term note payable as of March 31, 2023.

Year ending June 30,	TD Note Payment
2023 (remainder of FY 2023)	$	8,023

2024	34,057
2025	37,434
2026	41,145
2027	45,224
Thereafter	35,692
Total	$	201,575