Note 7 - Notes Payable

3 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Notes Payable [Text Block]

Note 7 — Notes Payable

Notes payable at June 30, 2024 and March 31, 2024 were as follows (in thousands):

	June 30,			March 31,
	2024			2024
SBA loan	$	159		$	160
Capchase loan		1,133			1,303
		1,292			1,463
Less: Current portion of Notes payable		(691	)		(692	)
Notes payable	$	601		$	771

SBA Loan

On June 17, 2020, the Company received the proceeds from a loan in the amount of less than $0.2 million from the United States. Small Business Administration (the “SBA”). Installment payments, including principal and interest, begin 12-months from the date of the promissory note. The balance is payable 30-years from the date of the promissory note, and bears interest at a rate of 3.75% per annum. There are no covenants associated with the SBA loan.

Loan and Security Agreement

In August 2023, the Company entered into a Loan and Security Agreement with Capchase Inc. (“Capchase”) pursuant to which the Company borrowed the amount of $1.7 million to further develop and acquire certain podcasts acquired by PodcastOne and for general working capital. The debt is subordinated to the ABL Credit Facility and bears an interest rate of 9%, which is included in the monthly amortization payments of approximately $73,100, with the final amortization payment due on February 4, 2026. As of June 30, 2024, the Company was in compliance with covenants under the Capchase agreement.

Maturities of notes payables as of June 30, 2024 were as follows (in thousands):

For Years Ending March 31,
2025 (remaining nine months)	$	521
2026		627
2027		4
2028		4
2029		4
Thereafter		132
Total	$	1,292