• Filing Date: 2016-07-14
  • Form Type: 10-K
  • Description: Annual report
v3.5.0.2
3. SHORT-TERM DEBTS AND LINES OF CREDIT
12 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
3. SHORT-TERM DEBTS AND LINES OF CREDIT

On November 3, 2015 the Company entered into a short-term note agreement with Community National Bank for a total value of $50,000.  As of March 31, 2016, the Company has drawn $50,000 on this short-term note.  The short-term note has a stated interest rate of 5.25%, maturity date of November 3, 2016 and an initial interest only payment on February 3, 2016.  The short-term note is guaranteed by an officer and director.

 

The Company has a working capital line of credit with Community National Bank.  On August 28, 2013, the Company renewed the line of credit for $30,000.  The line of credit bears an interest rate of 7.3% and is payable quarterly.  The line of credit matured on February 28, 2014 and was renewed by the Company with a maturity date of June 10, 2017.  It is secured by various assets of the Company’s subsidiaries, and is guaranteed by two directors of the Company.  The balance of the line of credit at March 31, 2016 and March 31, 2015 was $14,129 and $27,009, respectively.

 

The Company also has a working capital line of credit with Extraco Bank.  On March 12, 2015, the Company renewed the line of credit for $475,000.  The line of credit bears an interest rate of 4.0% that is compounded monthly on unpaid balances and is payable monthly.  The line of credit matures on April 30, 2017, and is secured by certificates of deposit and letters of credit owned by directors and shareholders of the Company.  The balance of the line of credit is $473,029 and $473,029 at March 31, 2016 and March 31, 2015, respectively.

 

The Company has additional lines of credit with Extraco Bank for $100,000 and $200,000, which were renewed on January 19, 2016 and April 30, 2016, with maturity dates of January 19, 2017 and April 30, 2017, respectively.  The lines of credit bear an interest rate of 4.5% that is compounded monthly on unpaid balances and is payable monthly.  They are secured by certificates of deposit and letters of credit owned by directors and shareholders of the Company.  The balance of the lines of credit was $278,470 and $278,470 at March 31, 2016 and March 31, 2015, respectively. 

 

The Company also has a working capital line of credit with Capital One Bank for $50,000.  The line of credit bears an interest rate of prime plus 25.9 basis points, which totaled 25.24% as of March 31, 2016.  The line of credit is unsecured.  The balance of the line of credit was $9,580 and $9,580 at March 31, 2016 and March 31, 2015, respectively.

 

The Company also has a working capital line of credit with Chase Bank for $25,000.  The line of credit bears an interest rate of prime plus 10 basis points, which totaled 13.98% as of March 31, 2016.  The line of credit is secured by assets of the Company’s subsidiaries.  The balance of the line of credit is $12,261 and $13,546 at March 31, 2016 and March 31, 2015, respectively.