. DEBT

Debt is comprised of the following (in thousands):

	June 30, 2020		June 30, 2019
Short-term and current maturities
Loan and Security Agreement (Bytewise)	$	-	$	1,765
Loan and Security Agreement (Term Loan)		597		-
Brazil Loans		3,935		2,300
		4,532		4,065
Long-term debt (net of current portion)
Loan and Security Agreement (Bytewise)		-		2,641
Loan and Security Agreement (Term Loan)		5,941		-
Loan and Security Agreement (Line of Credit)		20,400		14,900
		26,341		17,541
	$	30,873	$	21,606

Future maturities of debt are as follows (in thousands):

Fiscal Year
2021		4,532
2022		21,629
2023		1,280
2024		1,332
2025		1,386
Thereafter		714
Total	$	30,873

As a result of a decrease in sales related to the COVID-

epidemic, the Company anticipated potential non-compliance with its fixed charge coverage ratio for the year ended

June 30, 2020

under its Loan and Security Agreement (the “Loan Agreement”) by and among the Company and its U.S. operating companies (collectively, the “Borrowers”) and TD Bank, N.A. (“TD Bank”). On

June 25, 2020,

the Borrowers and TD Bank entered into an amendment and restatement (the “Amendment and Restatement”) of the Loan Agreement. The Amendment and Restatement waived the fixed charge coverage ratio for the quarter ended

June 30, 2020.

In addition, the Amendment and Restatement clarifies that certain non-cash adjustments to the definition of EBITDA are permitted under the Loan Agreement, as amended. In addition, the Amendment and Restatement increases the permitted borrowings from a foreign bank from

$5.0

million to

$15.0

million and permits the Company to draw the remainder of the outstanding balance under the Loan Agreement.

Pursuant to the terms of the Company's Amended and Restated Loan and Security Agreement of

June 25, 2020,

the “First Amendment” to this loan agreement was executed on

September 17, 2020,

which include, among other things, (i) pause testing of the Fixed Charge Coverage Ratio until

September 30, 2021

and (ii) establishment of a new minimum cumulative EBITDA and minimum liquidity covenants in lieu thereof. TD Bank perfected its security interests in the Company's U.S. based assets, increased the maximum interest charged on the Line Of Credit from and annual interest rate of

2.25%

plus Libor to

3.50%

plus Libor, and amended the borrowing base for the line of credit from

80%

of Qualified AR and

50%

of the lower of Cost or Market of US inventory values to

80%

of qualified AR plus

85%

of the Net Orderly Liquidation Value (NOLV) of US Inventory plus

62.5%

of total appraised US real estate values. As a result of this change, the Company is projected to maintain its current borrowing capacity of

$25,000,000

under the Line of Credit. The Company underwent a series of appraisals and field exams in all US locations as part of restructuring this agreement. In addition, the Company will provide additional reporting to TD Bank, including monthly profit and loss statements, balance sheets, cash flow statements and forecasting. This minimum adjusted EBITDA covenant is based on the Company's plan for a slow pandemic recovery throughout

FY21

and the impact of the Company's restructuring plan initiatives. The Company will apply certain proceeds from the sale of US real estate assets against the principle balance of the term loans under the TD Bank loan agreement. The Agreement will revert to the existing covenant package for the quarter ending

September 30, 2021

and every quarter thereafter.

December 31, 2019,

the Company entered into the Tenth Amendment of its Loan and Security Agreement (“Tenth Amendment”). Under the revised agreement, the credit limit for the Revolving Loan was increased from

$23.0

million to

$25.0

million. In addition, the Company entered into a new

$10.0

million

-year Term Loan with a fixed interest rate of

4.0%.

The new Term Loan will require interest only payments for

months and will convert to a term loan requiring both interest and principal payments commencing

January 1, 2021.

Under the Tenth Amendment, the credit limit for external borrowing was increased from

$2.5

million to

$5.0

million.

Total debt increased

$5.7

million and

$6.9

million during the

three

months and

nine

months ending

March 31, 2020.

During the

three

months ended

March 31, 2020

the Company pay down

$3.5

million of the Bytewise term loan (

November, 2011)

using the proceeds from borrowing

$6.5

million on the Loan and Security Agreement Term Loan. The line of credit balance increased

$2.5

million and Brazil loans increased

$0.2

million.

Availability under the Line of Credit remains subject to a borrowing base comprised of accounts receivable and inventory. The Company believes that the borrowing base will consistently produce availability under the Line of Credit of

$25.0

million. A

0.25%

commitment fee is charged on the unused portion of 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 was a

ten

-year loan bearing a fixed interest rate of

4.5%

and was payable in fixed monthly payments of principal and interest of

$160,640.

The Term Loan had a balance of

$3.5

million at

December 31, 2019.

During the

three

months ended

March 31, 2020

the Company paid down

$3.5

million of the Bytewise term loan.

December 2017,

the Company's Brazilian subsidiary entered into

two

short-term loans with local banks in order to support the Company's strategic initiatives. The loans backed by the entity's US dollar denominated export receivables were made with Santander Bank and Bradesco Bank. In

February 2019,

the Company's Brazilian subsidiary began refinancing debt among Santander, Bradesco and Brazil Bank as follows as of

June 30, 2020 (

in thousands):

Lending Institution	Interest Rate			Beginning Date	Ending Date	Outstanding Balance
Bradesco		5.18	%	May 2020	May 2021	$	1,000
Santander Bank		8.12	%	April 2020	April 2021		959
Brazil Bank		3.10	%	February 2020	February 2021		500
Brazil Bank		6.05	%	March 2020	February 2021		1,000
Brazil Bank		2.40	%	March 2020	February 2021		300
Brazil Bank		3.11	%	September 2019	September 2020		177
						$	3,936