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Note 6 – Property and Equipment
Property and equipment at June 30, 2018 and 2017, 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
Depreciation and amortization expense for the years ended June 30, 2018 and 2017, amounted to $1,460,067 and $1,120,018, respectively.
Note 7 – Debt
At June 30, 2017, CCRC had a revolving line of credit with Grandpoint Bank of $8,000,000 with an original maturity date of June 1, 2019. On June 5, 2018, the maximum borrowing allowed on the line of credit increased to $15,000,000 with an original maturity date of October 15, 2018, that was subsequently extended to 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, 2018, was 4.75% per annum. 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, 2018 and 2017, there were no outstanding balances on the line of credit.
On August 15, 2017, CCRC entered into a tax-exempt mortgage loan payable with Grandpoint 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.
Child Care Resource Center, Inc. Notes to Financial Statements
June 30,
$
2018
2,755,468 200,707 4,794,590 6,295,961 2,203,557 1,463,216 5,350,000
23,063,499 (11,148,234)
11,915,265 600,000
12,515,265
$
2017
1,623,057 - 4,107,491 5,302,445 2,135,826 1,199,870 -
14,368,689 (9,716,274)
4,652,415 -
4,652,415
$
$
15