Notes Receivable and Payable to Officers and Directors (Related Party Transactions) |
12 Months Ended | |
|---|---|---|
Feb. 29, 2020 | ||
| Related Party Transactions [Abstract] | ||
| Notes Receivable and Payable to Officers and Directors (Related Party Transactions) | Note 4. Notes Receivable and Payable to Officers and Directors (Related Party Transactions) To assist the Company in funding the debt assumed resulting from the acquisition of Jaco Displays, LLC (see Note 13), the Company borrowed $505,180 from Ronald D Ordway, CEO comprised of cash proceeds received of $148,330 with the remaining $356,850 in debt assumed as the CEO personally funded certain liabilities resulting from the acquisition. The Company combined this amount borrowed with another $438,832 owed to Mr. Ordway in back rent along with $82,838 from previous borrowings, and signed a promissory note for the aggregate balance of $1,026,850 at a six percent interest rate due on or before July 24, 2020 with Mr. Ordway. This note payable balance is therefore classified as a current liability on the consolidated balance sheets. On March 30, 2016, the Company entered into an assignment with recourse of the note receivable from Z-Axis Inc. (Z-Axis) with Ronald D. Ordway, CEO, and Jonathan R. Ordway, related parties, for the sum of $912 thousand. The note receivable is collateralized by a security interest in the shares of Z-Axis as well as a personal guaranty of its majority shareholder. Z-Axis is current on all scheduled payments regarding this note. The Company retains the right to repurchase the note at any time for 80% of the outstanding principle balance. Also, in the event of default by Z-Axis, the Company is obligated to repurchase the note for 80% of the remaining principle balance plus any accrued interest. Accordingly, the Company has recognized this transaction as a secured borrowing. The $0.9 million, 9% interest rate note originated on March 30, 2016, with payments beginning on April 16, 2016 and continuing for 56 months thereafter. The balance of the note at February 29, 2020 was $189 thousand with the entire balance classified as a current note payable. Under the terms of the arrangement, $189 thousand is expected to be received in fiscal 2020 and therefore the corresponding receivable is recorded as a current note receivable. |