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11. LINE OF CREDIT
 6 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
LINE OF CREDIT

NOTE 11                LINE OF CREDIT

 

The Company, specifically IPS, has a $1,300,000 revolving line of credit with a bank which was renewed at the discretion of the lender on August 5, 2020. The line of credit had a maturity date of May 31, 2021 at March 31, 2021, is guaranteed by the Company and is secured by all of IPS’ assets. The interest rate on the line of credit is 0.75% above The Wall Street Journal prime rate. The effective interest rate was 4.0% at both March 31, 2021 and September 30, 2020. In March 2021, the Company paid down the outstanding balance on the line of credit and $1,300,000 was available at March 31, 2021. The Company is subject to certain debt-service ratio requirements which are measured annually. At September 30, 2020, the Company was in violation of the required debt-service ratio covenants but was granted a waiver of the violation from the lender. In May 2021, the bank renewed the line of credit with a maturity date of May 31, 2022.