10. Line of Credit

12 Months Ended

Mar. 31, 2019

10. Line of Credit

On March 21, 2016, the Company entered into a line of credit agreement with Bank of America, which expired March 31, 2017. In March 2017, the Company extended until March 31, 2018. The line provided a revolving credit facility with borrowing capacity of up to $1,000,000. There were no covenants or borrowing base calculations associated with this line of credit. On August 29, 2018, the Company entered a Loan Modification Agreement (the “Agreement”) with the bank. The Agreement has the following provisions:

1)	The Company to make an additional principal payment of $50,000 by October 1, 2018. (The Company made this payment.)

2)	Borrowing base calculation tied to accounts receivable and inventories.

3)	The Agreement expired May 31, 2019 (see Note 22 for extension and modifications.)

4)	Interest on any outstanding balances is payable monthly at an annual interest rate equal to the LIBOR (London Interbank Offered Rates) Daily Floating plus 3.75 percentage points. The Company’s interest rate was 6.24863% at March 31, 2019.

5)	The line is collateralized by substantially all of the assets of the Company.

The Company will make principal payments of $5,000 per month from September 30, 2018 through November 30, 2018 and principal payments of $10,000 per month from December 31, 2018 to May 31, 2019. All required payments have been made. The March 31, 2019 payment was not charged to our account until April 1, 2019, and therefore is not reflected in the balance as of March 31, 2018.

During the year ended March 31, 2019 the Company repaid $200,000 against this line of credit. As of March 31, 2019, the Company was not in compliance with the debt service covenant. This covenant was waived and eliminated with the new agreement (see Note 22). As of March 31, 2019 and 2018, the outstanding balances were $800,000 and $1,000,000, respectively. As of March 31, 2019 the remaining availability under this line is $-0-.

During June 2019, Bank of America agreed to extend the Company’s line of credit until March 31, 2020 (see Note 22).