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 was payable in monthly installments of $16,000. During the three months ended December 31, 2016, the Company made the final payment of $17,000. During the nine months ended December 31, 2016, the Company made principal and interest payments of $114,000 and $1,000, respectively.

On August 10, 2016, the Company entered into a note agreement for $26,000 with an interest rate of 2.49% per year, and a monthly payment of $432. This instrument was issued in connection with the financing of an automobile. During the three months ended December 31, 2016, the Company made principal and interest payments related to this note in the amounts of $1,149 and $147, respectively. During the nine months ended December 31, 2016, the Company made principal and interest payments related to this note in the amounts of $3,531 (includes a first installment payment of $2,000) and $197, respectively. The remaining balance of this note amounted to $23,000 at December 31, 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 $630. This instrument was issued in connection with the financing of an automobile. During the three months ended December 31, 2016, the Company made principal payments related to this note of $1,000. The remaining balance of this note amounted to $37,000 at December 31, 2016, of which $7,000 is included in the current portion of long-term debt in the accompanying condensed consolidated balance sheet.