Line of Credit

12 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

8. Line of Credit

The Company has a line of credit with Bank of America with open availability up to $690,000 as of March 31, 2024, with monthly payments of interest only. The borrowing base calculation is tied to accounts receivable collateralized by substantially all of the assets of the Company. Interest on any outstanding balance is payable monthly at an annual interest rate equal to the sum of the greater of the BSBY (Bloomberg Short-Term Bank Yield Index rate) daily float plus 3.75 percentage points.

As of March 31, 2024, and March 31, 2023, the outstanding balances were $690,000 and $690,000, respectively. The interest rate on March 31, 2024, was 9.96%.

On April 1, 2024 Bank of America extended the Company line of credit with a maturity date of July 31, 2024, in addition the line of credit cash limit amount was increased from $690,000 to $1,000,000. Under the amendment, Interest on any outstanding balance is payable monthly at an annual interest rate equal to the Bank’s prime rate plus 1.05 percentage points and no less than 3.25%. The “Prime Rate” is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Bank’s costs and desired return, general economic conditions, and other factors, and is used as a reference point for pricing loans.