Annual report pursuant to Section 13 and 15(d)

Short and long term borrowings

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Short and long term borrowings
12 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Short and long term borrowings
8. Short and long 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.

 

      2015     2014  
  Bank Loan   $ 10,176     $ 14,499  
  Total borrowings     10,176       14,499  
  Less: current portion     (4,007 )     (4,323 )
  Long term debt   $ 6,169     $ 10,176  

 

      Interest expense for the years ended June 30, 2015 and 2014, totaled $743 and $1,369, respectively.