Note 10 - Debt

3 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

10. Debt: At  July 31, 2023 , the Company has a line of credit with Kansas State Bank in the form of a promissory note with an interest rate 8.4% totaling $2,000. The unused line at July 31, 2023  was $2,000. There were no advances made on the line of credit during the quarter ended  July 31, 2023. The line of credit is due on demand and is secured by a first and second position on all assets of the Company.

One note with Academy Bank, N.A. for $30,274 secured 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 in December 2027. The second note with Academy Bank, N.A. for $9,424 is secured 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 July 31, 2023.

At July 31, 2023, there was a note payable with Bank of America, N.A. with a balance of $907. The interest rate on this note is at SOFR plus 1.75%.  The loan is secured by buildings and improvements having a net book value of $640.  This note matures in March 2029.

At July 31, 2023, there is a note payable with Bank of America, N.A. with a balance of $416.  The interest rate on this note is at SOFR plus 1.75%.  This loan is secured by buildings and improvements with a net book value of $691.  This note matures in March 2029.

At July 31, 2023, there was a note payable with Patriots Bank with an interest rate of 4.35% totaling $1,007.  This loan is secured by aircraft security agreements with a net book value of $920.  This note matures in March 2029.

At July 31, 2023, there is a note payable with an interest rate of 8.13% totaling $39 secured by equipment with a net book value of $39. This note matures in October 2025.

We are compliant with the covenants and obligations of each of our notes as of July 31, 2023, and September 14, 2023.