Note 10 - Debt

9 Months Ended

Jan. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

10. Debt:

At  January 31, 2024 , 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 January 31, 2024  was $2,000. There were no advances made on the line of credit during the quarter ended  January 31, 2024. 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 $29,422 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 $8,094 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 January 31, 2024.

At January 31, 2024, there was a note payable with Bank of America, N.A. with a balance of $826. 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 $619.  This note matures in March 2029.

At January 31, 2024, there is a note payable with Bank of America, N.A. with a balance of $379.  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 $668.  This note matures in March 2029.

At January 31, 2024, there was a note payable with Patriots Bank with an interest rate of 4.35% totaling $928.  This loan is secured by aircraft security agreements with a net book value of $774.  This note matures in March 2029.

At January 31, 2024, there is a note payable with an interest rate of 8.13% totaling $36 secured by equipment with a net book value of $36. This note matures in October 2025.

We are compliant with the covenants and obligations of each of our notes as of January 31, 2024, and March 15, 2024.