SUBSEQUENT EVENTS

12 Months Ended

Mar. 31, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 15 – SUBSEQUENT EVENTS

Amended and Restated Loan Purchase and Sale Agreement

On April 23, 2021, the parties to the Loan Purchase and Sale Agreement, dated as of January 29, 2021, or the Original Loan Purchase Agreement, the Company, Stadco New Acquisition, LLC, or Acquisition Sub, Stadco, Stadco Acquisition, LLC, or the Holdco, each stockholder of Holdco, and Sunflower Bank, N.A., entered into an Amended and Restated Loan Purchase and Sale Agreement or the Amended Agreement. The Amended Agreement is similar in all material respects to the Original Loan Purchase Agreement, except that the following changes were effected. The date on which the closing of the indebtedness purchase will take place has been amended from on or about February 15, 2021 to June 15, 2021. Acquisition Sub became required to pay Sunflower Bank, N.A. a non-refundable deposit of $50,000, or the Deposit, which amount was paid upon execution of the Amended Agreement. The Deposit will be applied against the purchase price of the indebtedness upon the closing of the transactions contemplated under the Amended Agreement. Alternatively, in the event the indebtedness sale does not close, then Sunflower Bank, N.A. will retain the Deposit. The purchase price to be paid by Acquisition Sub for the indebtedness was increased to $1.8 million less than the aggregate amount of the indebtedness on the date of the closing of the transactions contemplated under the Amended Agreement. The Amended Agreement provides that the purchase price increases by $100,000 on the first calendar day of each month following the date of the Amended Agreement until the closing of the transactions. The Amended Agreement also effected certain other immaterial changes to the Original Loan Purchase Agreement.

Small Business Administration Loan

On May 12, 2021, as authorized by Section 1106 of the CARES Act, the SBA remitted to Berkshire Bank, the lender of record, a payment of principal and interest in the amounts of $1,317,000 and $13,207, respectively, for forgiveness of the Company’s Paycheck Protection Program (PPP) loan. The funds credited to the PPP loan pay this loan off in full. The Company applied for loan forgiveness with the SBA under the Paycheck Protection Program on March 26, 2021.