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Credit Facilities
9 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Credit Facilities

12.Credit Facilities

The Company had $2,500,000 outstanding under its lines of credit at March 31, 2020.  The Company had zero borrowings outstanding under its lines of credit at June 30, 2019.

On December 4, 2017, the Company entered into a Loan Agreement (the “Loan Agreement”) with Chemical Bank (“Chemical”), and related documents, including a Promissory Note.  The Loan Agreement is an on-demand line of credit and is cancelable at any time by either the Company or Chemical and any amounts outstanding would be immediately due and payable.  The Loan Agreement is guaranteed by the Company’s U.S. subsidiaries.  The Loan Agreement allows for maximum permitted borrowings of $8.0 million.  The borrowing base is calculated at the lesser of (i) $8.0 million or (ii) the sum of 80% of eligible accounts receivable balances of U.S. customers and subject to limitations, certain foreign customers, plus the lesser of 50% of eligible inventory or $3.0 million. At March 31, 2020, the Company’s available borrowing under this facility was approximately $3.2 million. Security for the Loan Agreement is substantially all of the Company’s assets in the U.S.  Interest is calculated at 2.65% above the 30 day LIBOR rate. The Company is not allowed to pay cash dividends under the Loan Agreement.        

The Company’s Brazilian subsidiary (“Brazil”) has a credit line and overdraft facility with its current local bank.  Brazil can borrow a total of B$300,000 (equivalent to approximately $58,000).  The Brazil facility is cancelable at any time by either Brazil or the bank and any amounts then outstanding would become immediately due and payable.  The monthly interest rate for the facility is 13.94% for the first B$200,000 (equivalent to approximately $39,000) utilized and 3.49% for utilization between B$200,000 and B$300,000. The Company had no borrowings under these facilities at March 31, 2020 and June 30, 2019, respectively.