Note

: Debt

Debt is comprised of the following (in thousands):

	9 /30/2017		6/30/201 7
Short-term and current maturities
Loan and Security Agreement	$	11,532	$	11,514

Long-term debt
Loan and Security Agreement , net of current portion		5,680		6,095
	$	17,212	$	17,609

The Company amended its Loan and Security Agreement, which includes a Line of Credit and a Term Loan, in

January 2015

with changes that took effect on

April 25, 2015.

Borrowings under the Line of Credit

may

not

exceed

$23.0

million. The Line of Credit expires on

April 30, 2018

and has an interest rate of LIBOR plus

1.5%.

The effective interest rate on the Line of Credit under the Loan and Security Agreement for the

three

months ended

September 30, 2017

and

2016

was

3.1%

and

2.4%,

respectively. Since the expiration date of the loan agreement is within the current fiscal year, the Line of Credit has been classified as short term. As of

September 30, 2017,

$9.9

million was outstanding on the Line of Credit.

November 22, 2011,

in conjunction with the Bytewise acquisition, the Company entered into a

$15.5

million term loan (the “Term Loan”) under the

then existing Loan and Security Agreement. 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

$160.6

thousand. The Term Loan had a balance of

$7.3

million at

September 30, 2017.

The material financial covenants of the amended Loan and Security Agreement are:

) funded debt to EBITDA, excluding non-cash and retirement benefit expenses (“maximum leverage”),

not

to exceed

2.25

00,

) annual capital expenditures

not

to exceed

$15.0

million,

) maintain a Debt Service Coverage Rate of a minimum of

1.25

1.00,

and

) 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

September 30, 2017.