Annual report pursuant to Section 13 and 15(d)

4. SHORT-TERM NOTE AND LINES OF CREDIT

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4. SHORT-TERM NOTE AND LINES OF CREDIT
12 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
SHORT-TERM NOTE AND LINES OF CREDIT

The Company also has a working capital line of credit with Extraco Bank. On April 30, 2019, the Company renewed the line of credit for $372,675. The line of credit bears an interest rate of 5.0% that is compounded monthly on unpaid balances and is payable monthly. The line of credit matures on April 30, 2020 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 $372,675 and $472,675 at March 31, 2020 and March 31, 2019. On April 12, 2019, prior to the renewal, the Company paid $100,000 on the loan. On April 30, 2020, the line of credit was renewed with a maturity date of April 30, 2021, for a balance of $372,675.

 

The Company also has additional lines of credit with Extraco Bank for $100,000 and $200,000, which were renewed on January 19, 2019 and April 30, 2019, respectively, with maturity dates of January 19, 2020 and April 30, 2020, respectively. On January 8, 2020, the Company paid off the $100,000 line of credit. The lines of credit bear an interest rate of 6.5% and 5%, respectively, 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 $178,778 and $276,958 at March 31, 2020 and March 31, 2019, respectively. On April 30, 2020, the line of credit was renewed with a maturity date of April 30, 2021, for a balance of $177,778.

 

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 31.4% as of March 31, 2019. The line of credit is unsecured. The balance of the line of credit was $9,580 at both March 31, 2020 and March 31, 2019.

 

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 15.50% as of March 31, 2019. The line of credit is secured by assets of the Company’s subsidiaries. The balance of the line of credit is $10,237 at March 31, 2020 and March 31, 2019.