v3.26.1
DEBT
3 Months Ended
May 31, 2026
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

Note 6 – DEBT

 

In March 2026, the Company executed a new credit agreement with Regent Bank (the Lender). The loan agreement establishes a revolving promissory note in the principal amount up to $2,000,000. Interest shall be calculated each month on the outstanding borrowings. The credit agreement was secured by the assets of the Company including accounts receivable, inventory, equipment and excess land. The Lender also required the personal guarantee of Craig White, President, Chief Executive Officer, and Chairman of the Board of the Company.

 

Available credit under the current revolving line of credit with the Company’s Lender was $2,000,000 as of May 31, 2026.

 

Features of the loan agreement include:

 

  (i) $2.0 million revolving loan with maturity date of March 6, 2027.
     
  (i)(a)  The revolving loan bears variable interest at a rate per annum equal to the U.S. Prime Rate + 2.00%.
     
  (i)(b) The U.S. Prime Rate was 6.75% as of May 31, 2026, making the total interest rate equal to 8.75%.