Subsequent Events

12 Months Ended

Mar. 31, 2015

Subsequent Events

Subsequent Events

11. Subsequent Events

Management evaluated all activity of us and concluded that, except for the events that follows, no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

On May 29, 2015, we signed an amendment to our credit facility agreement with Silicon Valley Bank. The terms of the credit facility include a line of credit for $2,000,000 for one year, until May 29, 2016, at an interest rate calculated at the prime rate plus 1.25%, subject to increase upon a default. The liquidity ratio covenant of the agreement limits our borrowing under the credit facility by a ratio of at least 2.0 to 1.0 of our eligible receivables plus cash, minus accounts payable that are over sixty days, at the time of borrowing. As of March 31, 2015, we had $64,000 of borrowings from the credit facility and, under our liquidity ratio limit, had an additional approximately $517,000 available to borrow. The credit facility is secured by all tangible and intangible assets, whether now owned or hereafter acquired, wherever located. Our credit facility is classified in the balance sheets as a long-term liability.