SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS	12 Months Ended
Mar. 31, 2025
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS	NOTE C – SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS The Company entered into an Agreement with Merchant Financial Group (Merchant) for the purpose of factoring the Company’s trade accounts receivable. Under the Agreement the Company may borrow eighty percent (80%) of eligible accounts receivable. The Agreement, as supplemented, provides for additional financing at the sole discretion of Merchant to be secured by inventory. The Agreement, which was extended and expires on January 6, 2026, provides for continuation of the program for successive two-year periods until terminated by one of the parties to the Agreement. The amount available to borrow from Merchant is approximately $348,000, and $610,000, at March 31, 2025 and 2024, respectively. Advances on factored trade accounts receivable are secured by all assets, are repaid periodically as collections are made by Merchant but are otherwise due upon demand, and bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 9.5% and 10.5% at March 31, 2025, and 2024, respectively). Advances under the Agreement are made at the sole discretion of Merchant, based on their assessment of the receivables and inventory, and our financial condition at the time of each request for an advance. At March 31, 2025, and 2024 there was $2,100,458 and $768,853 borrowed and outstanding under the factoring agreement, respectively. During the fiscal year ending March 31, 2024, a temporary provision by Merchant to provide additional funding of up to $500,000, characterized by Merchant as an over advance, and that provided funding up to one hundred percent (100%) of eligible accounts receivable, expired. In June 2024, Merchant approved additional funding via an overadvance of up to $1,600,000 secured by inventory. Under the Agreement, the Company assigned receivables of $23,513,973 and $18,668,543 during the years ended March 31, 2025, and 2024, respectively. The uncollected balance of receivables held by the factor amounted to $3,666,790 and $2,202,663 at March 31, 2025, and 2024. Included in the uncollected balance of receivables held by the factor are amounts classified by the factor as amounts at client risk of approximately $545,000 and $372,000 at March 31, 2025, and 2024, respectively. Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 5.0% and 6.0% at March 31, 2025, and 2024, respectively.) There was no cash on deposit with the Factor at March 31, 2025, or 2024.

SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS

12 Months Ended

Mar. 31, 2025

SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS

SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS

NOTE C – SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS

The Company entered into an Agreement with Merchant Financial Group (Merchant) for the purpose of factoring the Company’s trade accounts receivable. Under the Agreement the Company may borrow eighty percent (80%) of eligible accounts receivable. The Agreement, as supplemented, provides for additional financing at the sole discretion of Merchant to be secured by inventory. The Agreement, which was extended and expires on January 6, 2026, provides for continuation of the program for successive two-year periods until terminated by one of the parties to the Agreement. The amount available to borrow from Merchant is approximately $348,000, and $610,000, at March 31, 2025 and 2024, respectively. Advances on factored trade accounts receivable are secured by all assets, are repaid periodically as collections are made by Merchant but are otherwise due upon demand, and bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 9.5% and 10.5% at March 31, 2025, and 2024, respectively). Advances under the Agreement are made at the sole discretion of Merchant, based on their assessment of the receivables and inventory, and our financial condition at the time of each request for an advance. At March 31, 2025, and 2024 there was $2,100,458 and $768,853 borrowed and outstanding under the factoring agreement, respectively.

During the fiscal year ending March 31, 2024, a temporary provision by Merchant to provide additional funding of up to $500,000, characterized by Merchant as an over advance, and that provided funding up to one hundred percent (100%) of eligible accounts receivable, expired. In June 2024, Merchant approved additional funding via an overadvance of up to $1,600,000 secured by inventory.

Under the Agreement, the Company assigned receivables of $23,513,973 and $18,668,543 during the years ended March 31, 2025, and 2024, respectively. The uncollected balance of receivables held by the factor amounted to $3,666,790 and $2,202,663 at March 31, 2025, and 2024. Included in the uncollected balance of receivables held by the factor are amounts classified by the factor as amounts at client risk of approximately $545,000 and $372,000 at March 31, 2025, and 2024, respectively. Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 5.0% and 6.0% at March 31, 2025, and 2024, respectively.) There was no cash on deposit with the Factor at March 31, 2025, or 2024.