Inventories, net

Inventories, net consist of the following:

Notes Payable

On January 25, 2016, the Company entered into a note agreement for $146,000 with an interest rate of 6.25% per annum. This instrument was issued in connection with financing insurance premiums. The note is payable in monthly installments of $16,000 with the final payment on October 25, 2016. During the six months ended September 30, 2016, the Company made principal and interest payments of $98,000 and $2,000, respectively. The remaining balance of this note amounted to $16,000 at September 30, 2016 which is included in the current portion of long-term debt in the accompanying condensed consolidated balance sheet.

On August 10, 2016, the Company entered into a note agreement for $26,000 with an interest rate of 2.49% per year, and monthly payment of $600. This instrument was issued in connection with the financing of an automobile. During the three months ended September 30, 2016, the Company made principal and interest payments related to this note in the amounts of $2,000 and $50, respectively. The remaining balance of this note amounted to $24,000 at September 30, 2016, of which $5,000 is included in the current portion of long-term debt in the accompanying condensed consolidated balance sheet.

On September 27, 2016, the Company entered into a note agreement for $38,000 with an interest rate of 0%, and monthly payment of $400. This instrument was issued in connection with the financing of an automobile. During the three months ended September 30, 2016, the Company did not pay principal related to this note. The remaining balance of this note amounted to $38,000 at September 30, 2016, of which $7,000 is included in the current portion of long-term debt in the accompanying condensed consolidated balance sheet.