Line of Credit and Long-Term Debt

3 Months Ended

May 31, 2019

Line of Credit and Long-Term Debt

Note 6. – 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 May 31, 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 Company had $1.3 thousand outstanding margin account borrowing as of May 31, 2019 and none as of February 28, 2019. 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 were $12 thousand leaving net investments of $11 thousand after the margin account borrowings of $1 thousand at May 31, 2019. The margin interest rate is 4.25%.

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

	May 31, 2019		February 28, 2019
Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (5.25% as of May 31, 2019); monthly principal and interest payments of $5 thousand payable through July, 2019; collateralized by land and building of Teltron Technologies, Inc. Note fully paid off at May 31, 2019.	$	—	$	23
		—		23
Less current maturities		—		(23	)
	$	—	$	—