Note 9 - Debt

6 Months Ended

Oct. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

9. Debt: At October 31, 2022, the Company has a line of credit with Kansas State Bank in the form of a promissory note with an interest rate of 3.65% totaling $2,000. The unused line at October 31, 2022 was $2,000. There were no advances made on the line of credit during the three months ended  October 31, 2022. The line of credit is due on demand and is collateralized by the first and second positions on all assets of the Company.

At  October 31, 2022, One note with Academy Bank, N.A. for $31,551 (net of unamortized deferred finance costs of $241) collateralized by all of BHCMC's assets and compensation under the State management contract with an interest rate of 5.32% payable over seven years with an initial twenty-year amortization and a balloon payment of $19,250 at the end of seven years. The second note with Academy Bank, N.A. for $11,356 (net of unamortized deferred finance costs of $110) collateralized by all of BHCMC's assets and compensation under the State management contract with an interest rate of 5.75% payable in full over five years. These notes contain a covenant to maintain a debt service coverage ratio of 1.3 to 1.0. These notes also contain a liquidity covenant requiring the Company to maintain an aggregate sum of $1.5 million of unrestricted cash. We are in compliance with these covenants at October 31, 2022.

At October 31, 2022, there was one note with 1st Source Bank with an interest rate of 6.25% collateralized by aircraft security agreements totaling $217. This note was used for the purchase and modifications of collateralized aircraft. This note matures in January 2023.

At October 31, 2022, there is one note with Fidelity State Bank and Trust Company totaling $170 collateralized by real estate in Dodge City, Kansas. The interest rate on this note is 6.25%. This note matures in June 2024.

At October 31, 2022, there is a note payable with Bank of America, N.A. collateralized by real estate with a balance of $1,027. The interest rate on this note is at SOFR plus 1.75%. This note matures in March 2029.

At October 31, 2022, there is a note payable with Bank of America, N.A. collateralized by real estate with a balance of $471. The interest rate on this note is at SOFR plus 1.75%. This note matures in March 2029.

At October 31, 2022, there is a note payable with Patriots Bank collateralized by aircraft security agreements with a balance of $1,122. The interest rate on this note is 4.35%. This note matures in March 2029.

At October 31, 2022, there is a note payable with an interest rate of 8.13% collateralized by equipment with a balance of $48. This note matures in October 2025.

In May 2020, the Company received a Paycheck Protection Program (PPP) loan for $2,001. In June 2021, the Company received notice of forgiveness from the Small Business Administration.

We are not in default of any of our notes as of October 31, 2022.

We believe that our current banks will provide the necessary capital for our business operations. However, we continue to maintain contact with other banks that have an interest in funding our working capital needs to continue our growth in operations in 2022 and beyond.