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SUBSEQUENT EVENTS
6 Months Ended
Aug. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 17 – SUBSEQUENT EVENTS

 

Effective September 11, 2023, the Company (“Seller”) entered into a Contract of Sale of Real Estate (“Sale Agreement”) with MA Temple Investments LLC (the “Buyer”), for the sale of the Company’s property located at 10302 East 55th Place, Tulsa, Oklahoma 74146 consisting of 104,875 rentable square feet on approximately 3.5 acres. The Sale Agreement price was $5,100,000. Per the Sale Agreement, the closing process shall be completed on or before October 25, 2023, and has not closed by the time of this filing. In accordance with the terms of the Sale Agreement, upon closing of the sale and commencing on the Closing Date, the Buyer and Seller shall execute a NNN (triple-net) Lease (the “Lease”) under which the Seller shall lease the entire building for a period of three years. The Seller will continue to have the right to sublease space within the building for the lease term. The initial lease rate shall be $4.00 per rentable square foot, with 3% escalations at the beginning of each year of the Lease. The Lease shall include NNN terms such that the Seller shall be responsible for utilities, insurance, property taxes and repairs and maintenance, excluding roof and structure, which shall be the Buyer’s responsibility. The Lease shall include other terms considered to be normal and customary in the local market. The net cash received from the sale will be applied to the Term Loans outstanding in the Credit Agreement with the Company’s Bank.

 

During September 2023, the cash held in reserve, presented as restricted cash on the Company’s condensed balance sheet, was increased to approximately $1,500,000.