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Subsequent Events
12 Months Ended
Feb. 29, 2016
Subsequent Events

Note 17. Subsequent Events

On March 30, 2016 Video Display Corporation entered into an assignment with recourse of their note receivable from Z-Axis, Inc. with Ronald D. Ordway, CEO, and Jonathan R. Ordway, related parties, for the sum of $912 thousand. The balance on the note at the time of the assignment was $1.14 million. The Company recognized an impairment of this note in the amount of $228 thousand to net realizable value at February 29, 2016. The Company also retains the right to repurchase the note at any time for 80% of the outstanding principle balance. In the event of default by Z-Axis, the Company is obligated to repurchase the note for 80% of the remaining principle balance plus any accrued interest. The note receivable is collateralized by a security interest in the share of Z-Axis as well as a personal guaranty of its majority shareholder. Z-Axis is current on all scheduled payments regarding this note.