Note 7 - Notes Payable

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Notes Payable [Text Block]

Note 7 — Notes Payable

Notes payable at December 31, 2023 and March 31, 2023 were as follows (in thousands):

	December 31,			March 31,
	2023			2023
SBA loan	$	162		$	163
Capchase loan		1,473			-
		1,635			163
Less: Current portion of Notes payable		(694	)		(15	)
Notes payable	$	941		$	148

SBA Loan

On June 17, 2020, the Company received the proceeds from a loan in the amount of less than $0.2 million from the United States. Small Business Administration (the “SBA”). Installment payments, including principal and interest, begin 12-months from the date of the promissory note. The balance is payable 30-years from the date of the promissory note, and bears interest at a rate of 3.75% per annum. The Company was in compliance with all debt covenants associated with the SBA loan as of December 31, 2023.

Loan and Security Agreement

In August 2023, the Company entered into a Loan and Security Agreement with Capchase Inc. (“Capchase”) pursuant to which the Company borrowed the amount of $1.7 million to further develop and acquire certain podcasts acquired by PodcastOne and for general working capital. The debt is subordinated to the ABL Credit Facility and bears an interest rate of 9%, which is included in the monthly amortization payments of approximately $73,100, with the final amortization payment due on February 4, 2026.

Maturities of notes payables as of December 31, 2023 were as follows (in thousands):

For Years Ending March 31,
2024 (remaining three months)	$	219
2025		876
2026		378
Thereafter		162
Total	$	1,635