Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.6
Debt
 9 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]  
Debt
Note 3 - Debt
Long term debt relates to a $1.7 million note payable re-issued in January 2011 (the "Note Payable"). The Note Payable will be fully amortized in June 2014. The outstanding principal as of March 31, 2013, and June 30, 2012, consisted of the following:
 
March 31,
2013
 
June 30,
2012
 
(In thousands)
Note payable
$
498

 
$
870

Less current portion of note payable
(411
)
 
(480
)
Long term debt, excluding current portion
$
87

 
$
390


As of March 31, 2013, the minimum future principal maturities of long term debt were as follows:
 
Total
 
(In thousands)
One year
$
411

Two years
87

Total
$
498


The variable rate of the note is based upon the Wall Street Journal Prime Rate (the "Index") plus 1.00%, subject to a floor rate of 6.25%. The Index was 3.25% at March 31, 2013, resulting in an interest rate of 6.25% per annum as of March 31, 2013. Under the Note Payable, NP is subject to certain customary financial and restrictive covenants. As of March 31, 2013, NP was in compliance with all financial and restrictive covenants.
In addition, the Company has a $1.0 million working capital line of credit classified as short term debt (the "Line of Credit"). The amount due on the Line of Credit was $0.6 million and $50 thousand as of March 31, 2013 and June 30, 2012, respectively. The Line of Credit bears interest at a variable rate, which was 6.25% as of March 31, 2013. This Line of Credit also secures a letter of credit in the amount of $25 thousand in favor of the Bureau of Land Management. As of March 31, 2013, $0.3 million was available under this Line of Credit.
The Note Payable and Line of Credit are collateralized by a first mortgage and an assignment of production from Poplar and are guaranteed by Magellan up to $6.0 million, not to exceed the amount of the principal owed. The carrying amount of the Company's long term debt approximates its fair value, due to its variable interest rate, which resets based on the market rates