Page 18 - 2019 - 2020 Child Care Resource Center Audited Financial Statements

Child Care Resource Center, Inc. Notes to Financial Statements
Note 6 – Property and Equipment
Property and equipment at June 30, 2020 and 2019, is as follows:
Leasehold improvements
Building improvements
Computer equipment and software Office equipment
Furniture and fixtures Vehicles
Building
Less: accumulated depreciation and amortization
Depreciable property and equipment, net Land
Total property and equipment, net
$
2020
5,401,641 675,075 4,994,183 7,830,372 2,345,788 1,386,015 5,350,000
27,983,074 (15,742,501)
12,240,573 600,000
12,840,573
$
2019
4,688,268 355,658 4,903,640 7,083,182 2,345,480 1,504,079 5,350,000
26,230,307 (13,195,338)
13,034,969 600,000
13,634,969
$
$
Depreciation and amortization expense for the years ended June 30, 2020 and 2019, amounted to $2,665,228 and $2,083,038, respectively.
Note 7 – Debt
CCRC has a revolving line of credit with Pacific Premier Bank with a maximum borrowing allowed of $15,000,000 with a maturity date of October 15, 2020. Borrowings bear an interest rate equal to the Wall Street Journal prime rate computed based on a 365/360 basis. The effective interest rate at June 30, 2020 and 2019, was 2.75% and 5% per annum, respectively. Collateral used to secure the line of credit does not include any property acquired or improved with federal funds from the DHHS – ACF for the benefit of the Head Start Program. At June 30, 2020 and 2019, there were no outstanding balances on the line of credit. CCRC renewed the line of credit with Pacific Premier Bank for $15,000,000 which increases to $25,000,000 effective June 1, 2021 through August 31, 2021, and then reverts back to $15,000,000 until its maturity on January 15, 2022.
On August 15, 2017, CCRC entered into a tax-exempt mortgage loan payable with Pacific Premier Bank as issued by the California Enterprise Development Authority (CEDA) in the amount $5,355,000 to acquire land and a building located in Palmdale, California.
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