Credit Facilities

12 Months Ended

Jun. 30, 2015

Credit Facilities [Abstract]

Credit Facilities

4.Credit Facilities

The Company had no bank debt outstanding at June 30, 2015 and June 30, 2014.

The Company acquired bank debt of $2.1 million as part of the purchase of Coord3.  The Company paid $1.7 million of this debt in March 2015 and the remaining balance was paid in June 2015.

The Company has a $6.0 million secured credit agreement with Comerica Bank (“Credit Agreement”) which expires on November 2, 2015.  Proceeds under the Credit Agreement may be used for working capital and capital expenditures.  Security for the Credit Agreement is substantially all non-real estate assets of the Company held in the United States.  Borrowings are designated as a Libor-based Advance or as a Prime-based Advance if the Libor-based Advance is not available.  Interest on Libor-based Advances is calculated at 2.35% above the Libor Rate offered at the time for the period chosen, and is payable on the last day of the applicable period.  Quarterly, the Company pays a commitment fee of 0.15% per annum on the average daily unused portion of the revolving credit commitment.  The Companyis required to maintain a minimum Tangible Net Worth of$31.0 million.  The Company was in compliance with the Tangible Net Worth financial covenant at June 30, 2015.  The Credit Agreement limits borrowings to the lesser of $6.0 million or 80% of eligible accounts receivable, which was $4.7 million at June 30, 2015.The Company is permitted to declare dividends of up to $2.5 million in any fiscal year provided the Company maintains the required minimum Tangible Net Worth.  The Company is also required to have no advances outstanding under the Credit Agreement for 30 days (which need not be consecutive) during each calendar year. 

At June 30, 2015, the Company's German subsidiary (“GmbH”) had an unsecured credit facility totaling 350,000 Euros (equivalent to approximately $388,395).  The facility allows 100,000 Euros to be used to finance working capital needs and equipment purchases or capital leases. The facility allows up to 250,000 Euros to be used for providing bank guarantees.  Any borrowings for working capital needs will bear interest at 4.25%.   Amounts exceeding the limit of 100,000 Euros will bear interest at 7.15%.  Any outstanding bank guarantees will bear interest at 2.0%.  The GmbH credit facility is cancelable at any time by either GmbH or the bank and any amounts then outstanding would become immediately due and payable.  At June 30, 2015 and 2014, GmbH had no borrowings or bank guarantees outstanding.