Credit Facilities

3 Months Ended

Sep. 30, 2017

Credit Facilities [Abstract]

Credit Facilities

10.Credit Facilities      

We had approximately $612,000and$1,705,000 outstanding under our line of credit and short-term notes payable at September 30, 2017 and June 30, 2017, respectively.  In addition, we had approximately $124,000 of long-term debt outstanding at September 30, 2017 and $171,000 of long-term debt outstanding at June 30, 2017, which is included in ‘Other Long-Term Liabilities’ on our Consolidated Balance Sheet.

At September 30, 2017, we were a party to an Amended and Restated Credit Agreement with Comerica Bank (the “Credit Agreement”).  The Credit Agreement is an on-demand line of credit. The Credit Agreement is cancelable at any time by either Perceptron or Comerica and any amounts outstanding would be immediately due and payable.  The maximum permitted borrowings are $6.0 million.  The borrowing base is equal to the lesser of (i) $6.0 million or (ii) the sum of 80% of eligible accounts, plus the lesser of 50% of eligible inventory or $2.5 million. At September 30, 2017, our additional available borrowing under this facility was approximately $5.2 million.  Proceeds under the Credit Agreement may be used for working capital and capital expenditures.  Security for the Credit Agreement is substantially all of our assets 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.  We are required to maintain a Tangible Net Worth of at least $29.0 million.We were in compliance with the Tangible Net Worth financial covenant at September 30, 2017. We are not allowed to pay cash dividends under the Credit Agreement.  We are also required to have no advances outstanding under the Credit Agreement for 30 days (which need not be consecutive) during each calendar year and we met this requirement during the first quarter of fiscal 2018.  We had $400,000and $1,500,000 in borrowings outstanding under the Credit Agreement at September 30, and June 30, 2017, respectively. 

During the third quarter of fiscal 2016, our Italian subsidiary, Coord3, exercised an option to purchase their current manufacturing facility.  The total remaining principal payments of €285,000 (equivalent to approximately $336,000) payable over the following 19 months at a 7.0% annual interest rate are recorded in ‘Short-term notes payable’ and ‘Other Long-Term Liabilities’ on our Consolidated Balance Sheet at September 30, 2017.

Our Brazilian subsidiary (“Brazil”) has several credit lines and overdraft facilities with their current local bank.  Brazil can borrow a total of B$369,000(equivalent to approximately $116,000).  The Brazil facilities are cancelable at any time by either Brazil or the bank and any amounts then outstanding would become immediately due and payable.  The monthly interest rates for these facilities range from 2.75% to 12.30%.  We had zero in borrowings under these facilities at September 30, and June 30, 2017, respectively.