SUBSEQUENT EVENTS

6 Months Ended

Sep. 30, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 17 — SUBSEQUENT EVENTS

On August 8, 2011, a complete appraisal of the Company’s property in Westminster Massachusetts was completed. As a result, on September 30, 2011, the current loan to value ratio in the bond covenant was in excess of the required ratio as provided in the original covenant creating insufficient collateral associated with the Bonds. On October 28, the Bank and the Company amended its debt agreement. As such, the parties agreed to resolve the collateral shortfall by having the Company establish a separate interest bearing restricted cash account with the Bank in the amount of $490,000 which is pledged as additional collateral to the debt and restricted from use for any other purpose. The required restricted balance will be amortized down at the current monthly debt principal amount of $17,708.

At September 30, 2011, the Company did not meet the requirement to maintain a ratio of earnings to cover fixed charges of 120%.   The Company has obtained a waiver of the breach of such covenant from the bank, which waiver covers the breach that otherwise would have occurred in connection with the covenant testing for the quarter ended September 30, 2011.  The waiver does not apply to any future covenant testing dates.  The Company expects to be in compliance with this covenant as of the next testing period (which will occur in connection with the end of the Company’s fiscal quarter ending December 31, 2011).