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REVOLVING LINE OF CREDIT
6 Months Ended
Aug. 31, 2023
Debt Disclosure [Abstract]  
REVOLVING LINE OF CREDIT

NOTE 7: REVOLVING LINE OF CREDIT

 

The Company has a $1,500,000 revolving line of credit at prime which was 8.50% at August 31, 2023 and 7.75% at February 28, 2023. The revolving credit line is collateralized by the Company’s accounts receivable and inventory. The revolving credit line is payable on demand and must be retired for a 30-day period, once annually. If the Company fails to perform the 30-day annual pay down or if the bank elects to terminate the credit line, the bank may, at its option, convert the outstanding balance to a 36-month term note with payments including interest in 36 equal installments.

 

As of August 31, 2023, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $1,500,000.