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7. Short Term Borrowings
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9 Months Ended |
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Mar. 31, 2015
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| Debt Disclosure [Abstract] | |
| 7. Short Term Borrowings |
7. Short Term Borrowings
On November 24, 2010, the Company entered into a Small Business Working Capital Loan with a well-established Bank. The loan is personally guaranteed by the Company’s Chief Executive Officer, which is further guaranteed for 90% by the United States Small Business Administration (SBA).
The term of the loan is seven years until full amortization and currently carries an 8% interest rate, which is based upon Wall Street Journal (“WSJ”) Prime 3.75% Plus 4.75% and is adjusted quarterly. Monthly principal payments are required during this 84 month period.
Interest expense for the nine month period ended March 31, 2015 and 2014, totaled $515 and $1,081, respectively.
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