Note 7: Debt

Debt, including capitalized lease obligations, is comprised of the following (in thousands):

	3/31/2015 (Unaudited)		6/30/2014
Notes payable and current maturities of long term debt
Loan and Security Agreement	$	1,457	$	10,410
Capitalized leases		113		138
		1,570		10,548
Long-term debt
Loan and Security Agreement		19,543		10,726
Capitalized leases		-		78
		19,543		10,804
	$	21,113	$	21,352

The Company executed an amendment to its Loan and Security Agreement (Line of Credit) as of April 25, 2012. On January 26, 2015 the Line of Credit was further amended and extended based on the current debt limits and financial covenants and will expire on April 30, 2018. As a result of this three year extension, all Line of Credit balances have been classified as long-term. The agreement continued the previous line of $23.0 million, of which $12.3 million is available as of March 31, 2015, with an interest rate of LIBOR plus 1.5%.

As of March 31, 2015 the material financial covenants of the amended Loan and Security Agreement were: 1) funded debt to EBITDA, excluding non-cash and retirement benefit expenses (“maximum leverage”), not to exceed 2.25 to 1, 2) annual capital expenditures not to exceed $15.0 million, 3) maintain a Debt Service Coverage Rate of a minimum of 1.25 to 1 and 4) maintain consolidated cash plus liquid investments of not less than $10.0 million at any time. The Company was in compliance with all debt covenants as of March 31, 2015.

The effective interest rate on the Line of Credit under the Loan and Security Agreement for the nine months ended March 31, 2015 and 2014 was 2.0% and 2.0%, respectively.

On November 22, 2011, in conjunction with the Bytewise acquisition, the Company entered into a $15.5 million term loan (the “Term Loan”) under the existing Loan and Security Agreement with TD Bank N.A. The term loan is a ten year loan bearing a fixed interest rate of 4.5% and is payable in fixed monthly payments of principal and interest of $160,640. The term loan, which had a balance of $11.1 million at March 31, 2015, is subject to the same financial covenants as the Loan and Security Agreement.