Lines of Credit and Long-Term Debt

12 Months Ended

Feb. 28, 2015

Lines of Credit and Long-Term Debt

Note 4. Lines of Credit and Long-Term Debt

In fiscal 2014, with the sale of the Company’s Aydin Displays, Inc and Z-Axis, Inc. subsidiaries, the Company repaid all remaining bank debt, which included a line of credit and two term loans, totaling approximately $14.0 million. Currently, the only remaining debt of the Company is $0.2 million it owes on a building owned by its subsidiary, Teltron Technologies, Inc. in Birdsboro, PA.

The Company had outstanding margin account borrowing of $4.0 million as of February 28, 2015. The Company had no margin account borrowing as of February 28, 2014. The margin account borrowings are used to purchase marketable equity securities and are netted against the investments in the balance sheet to show net trading investments. The gross investments as of February 28, 2015 were $6.5 million leaving net investments of $2.5 million after the margin account borrowings of $4.0 million. The margin interest rate is 2%.

Long-term debt consisted of the following (in thousands):

	February 28, 2015			February 28, 2014
Mortgage payable to bank; interest rate at Community Bank base rate plus 0.5% (3.75% as of February 28, 2015); monthly principal and interest payments of $5 thousand payable through October 2021; collateralized by land and building of Teltron Technologies, Inc.		233			281
		233			281
Less current maturities		(50	)		(48	)
	$	183		$	233

Future maturities of lines of long-term debt are as follows (in thousands):

Year	Amount
2016	$	50
2017		53
2018		54
2019		56
2020		20
	$	233