Note 4 - Line of Credit

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Short-term Debt [Text Block]

4. LINE OF CREDIT

On

August 30, 2016,

the Revolving Credit Agreement (the “Credit Agreement”), which the Company and First Foundation Bank (“the Bank”) entered into on

June 3, 2016,

became effective after the Company and the Bank received the necessary approvals from the State of Hawaii to secure the lien on the Company

’s leasehold property in Kona, Hawaii. The Credit Agreement allows the Company to borrow up to

$2,000,000

on a revolving basis. Borrowings under the Credit Agreement bear interest at the Wall Street Journal prime rate (

4.25%

at

September 

30,

2017

) +

2%,

floating. The Credit Agreement includes various covenants as defined in the Credit Agreement. The Credit Agreement also contains standard acceleration provisions in the event of a default by the Company. As of

September 30, 2017,

the Company had borrowed

$500,000

and had

$1,500,000

available on the line. The line of credit is subject to annual renewal and was renewed on

August 30, 2017

and will be subject to renewal upon expiration on

August 30, 2018.

The Credit Agreement grants the Bank the following security interests in the Company

’s property: (a) a lien on the Company’s leasehold interest in its Kona facility; (b) an assignment of the Company’s interest in leases and rents on its Kona facility; and (c) a security interest in all fixtures, furnishings and equipment related to or used by the Company at the Kona facility. Each security interest is further subject to the terms of the Credit Agreement.