Interest expense was
$0.2 millionfor fiscal 2013 compared to $0.4 millionfor fiscal 2012, a decrease of $0.2 millionor 44%. The decrease in interest expense was primarily due to a lower average balance in our revolving line of credit of $1.5 millionfor fiscal 2013 compared to an average balance of $4.1 million
for fiscal 2012. 38 Income Tax Provision
For fiscal 2013 and fiscal 2012, our effective tax rates were 3.7% and (1.6%), respectively. For additional information about income taxes, see Note 10 ''Income Taxes'' of the Notes to Consolidated Financial Statements.
Liquidity, Capital Resources and Financial Condition
Since our inception, we have financed our operations primarily from the issuance of our stock, cash flows from operations, and borrowings under credit facilities. As of
June 30, 2013, our primary sources of liquidity to fund our operations were the collection of accounts receivable balances generated from net sales, proceeds from our revolving line of credit, and proceeds from stock issuances. For additional operational funds requirements, we have additional borrowing capacity on our revolving line of credit with the Bank which matures on May 6, 2015, see Note 8 ''Revolving Lines of Credit'' of the Notes to Consolidated Financial Statements for detail information. As of June 30, 2013, our availability under this credit facility was approximately $2.0 million. As of June 30, 2013, our cash and cash equivalents totaled $2.3 millioncompared to $1.6 millionas of June 30, 2012. As of June 30, 2013, our accounts receivable, less allowances, totaled $4.1 millioncompared to $4.9 millionas of June 30, 2012. Change June 30, 2013 June 30, 2012 $ Percent (In thousands, except percentages) Accounts receivable $ 4,613 $ 5,620 $ (1,007 )(18 )% Allowance for doubtful accounts (510 ) (686 ) 176 (26 )% Total - Accounts receivable $ 4,103 $ 4,934 $ (831 )(17 )%
During fiscal 2013, accounts receivable decreased
$1.0 million, or 18%, to $4.6 millionfrom $5.6 millionat June 30, 2012. Our allowance for doubtful accounts decreased $0.2 million, or 26%, to $0.5 millionat June 30, 2013from $0.7 millionat June 30, 2012. Changes in accounts receivable during fiscal 2013 were as a result of our routine evaluation of customer balances. We adjusted the Allowance as appropriate based upon the collectability of the receivables in light of historical trends, adverse situations that may affect our customers' ability to repay, and prevailing economic conditions. This evaluation was done in order to identify issues which may impact the collectability of receivables and reserve estimates. Revisions to the Allowance are recorded as an adjustment to bad debt expense. After appropriate collection efforts are exhausted, specific receivables deemed to be uncollectible are charged against the Allowance in the period they are deemed uncollectible. Recoveries of receivables previously written-off are recorded as credits to the Allowance.