Line of Credit and Long-Term Debt

12 Months Ended

Feb. 28, 2019

Line of Credit and Long-Term Debt

Note 3. Line of Credit and Long-Term Debt

The Company has a $0.5 million line of credit with the Brand Banking Company with no balance outstanding on the line at February 28, 2019. The line matures on August 15, 2019, is personally guaranteed by the Chief Executive Officer and has an interest rate of LIBOR plus 3.75%. The loan has no financial covenants.

The only other commercial, non-related party debt of the Company is $23 thousand outstanding as of February 28, 2019 that is owed on a building owned by the Company’s subsidiary, Teltron Technologies, Inc., in Birdsboro, PA. This amount owed will be paid in full in fiscal 2020.

The Company had no outstanding margin account borrowings as of February 28, 2019 as all security investments were liquidated in fiscal 2019. The outstanding margin account borrowings as of February 28, 2018 was $0.1 million. The margin account borrowings were used to purchase marketable equity securities and were netted against the investments in the consolidated balance sheet to show net trading investments. The gross investments as of February 28, 2018 were $0.3 million leaving net investments of $0.2 million after the margin account borrowings of $0.1 million. The margin interest rate was 2%.

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

	February 28, 2019			February 28, 2018
Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (6% as of February 28, 2019); monthly principal and interest payments of $5 thousand payable through July 2019; collateralized by land and building of Teltron Technologies, Inc.	$	23		$	78
		23			78
Less current maturities		(23	)		(55	)
	$	—		$	23