Note 13 - Related Party Transactions

6 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

13. RELATED PARTY TRANSACTIONS 

During the

six

months ended

September 30, 2019,

the 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. At both

September 30, 2020

and

March 31, 2020,

the Skywords Note principal balance was

$1,500,000

.

The loan balance at

September 30, 2020

was included in current maturities of long-term debt and at

March 31, 2020

was included in long-term debt on the Condensed Consolidated Balance Sheets.