Note 16 - Related-party Transactions and Balances

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

16. RELATED-PARTY TRANSACTIONS AND BALANCES

During the year ended

March 31, 2020,

Company obtained an unsecured subordinated loan from Skywords Family Foundation, Inc. (“Skywords”) in the principal amount of

$1,500,000

pursuant to a Promissory Note (the “Skywords Note”) executed by the Company in favor of Skywords. Skywords is controlled by the Company’s Chairman of the Board of Directors and largest stockholder. The Skywords Note bears interest at a rate of

1%

plus the prime rate (as published by the Wall Street Journal), which will be recalculated and payable on a quarterly basis.  The principal amount and any accrued and unpaid interest will be due and payable on

April 12, 2021,

unless accelerated in an event of default. The Company

may

prepay the Skywords Note at any time without penalty. The proceeds of the Skywords Note were used to pay down accounts payable and for general operating capital purposes.

During the year ended

March 31, 2019,

the Company entered into a consulting agreement with an effective date of

May 5, 2018

with a vendor that employs

one

of the Company’s independent directors. The Company’s independent director is

not

named in or involved in the performance of the consulting agreement. The amount of contract was for

$120,000

and the all the payments made against the contract were reflected in general and administrative expense during the year ended

March 31, 2019.