Term Notes Payable

6 Months Ended

Feb. 29, 2020

NOTE 3 – TERM NOTES PAYABLE

Pursuant to the credit agreement we obtained in August 2019 (the 2019 Credit Agreement), we have the ability to borrow up to $25.0 million in term loans. At August 31, 2019, we had borrowed $20.0 million of the available term loan amount. During November 2019, we borrowed the remaining $5.0 million term loan available on the 2019 Credit Agreement. The additional $5.0 million term loan has the same terms and conditions as the previous term loan and does not change the amount of our quarterly principal payments. However, the maturity date of the term loans is extended for one year as a result of the additional payments. At February 29, 2020, our future principal payments on the term loans are as follows (in thousands):



YEAR ENDING AUGUST 31,		Amount
2020	$	2,500
2021		5,000
2022		5,000
2023		5,000
2024		5,000
	$	22,500