Note 15 - Subsequent Events

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 

15

 – SUBSEQUENT EVENTS

The World Health Organization characterized the COVID-

19

virus as a global pandemic on

March 11, 2020.

The COVID-

19

global pandemic has negatively affected the global economy.  We began to see the impact of COVID-

19

during our

fourth

quarter of fiscal

2020

with certain of our customers being required to close and/or suspend their own operations due to the COVID-

19

pandemic.  As a result, net sales and production levels during the

fourth

quarter of fiscal

2020

and the

first

quarter of fiscal

2021

were reduced, thus impacting our results of operations during these quarters.  The extent of the impact of the COVID-

19

pandemic on our business, financial results and liquidity will depend on future developments and the financial condition of our customers that we

may

not

be able to foresee.  Any of these factors, and other factors beyond our control, can adversely impact our results for the

first

quarter of fiscal

2021,

as well as the full fiscal year, and such impact

may

be material.  At this time, management is unable to quantify its potential effects on the operations and financial performance of the Company.

In

May 2020,

under the U.S. Small Business Administration Paycheck Protection Program, the Company received approximately

$381,000.

The loan will be forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities, with at least

60%

being used for payroll. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. Loan payments will also be deferred for

six

months.

No

collateral or personal guarantees were required for the loan. The loan has an interest rate of

1%

and a maturity of

two

years, which can be extended up to

five

years if the Company and the lender agree.

We evaluated all subsequent events from the date of the consolidated balance sheet through the issuance date of these consolidated financial statements and determined that there are 

no

 events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the consolidated financial statements.