Quarterly report pursuant to Section 13 or 15(d)

7. Borrowings

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7. Borrowings
6 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
7. Borrowings

7. 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 six month period ended December 31, 2014 and 2013, totaled $346 and $752, respectively.