ACCOUNTS RECEIVABLE FINANCING

12 Months Ended

Mar. 29, 2013

Accounts Receivable Financing

ACCOUNTS RECEIVABLE FINANCING

Note 5 - ACCOUNTS RECEIVABLE FINANCING:

The Company has an accounts receivable financing agreement with a non-bank lending institution (“Factor”) whereby it can borrow up to 80 percent of its eligible receivables (as defined in such financing agreement) at an interest rate of 2 ½% above JP Morgan Chase’s publicly announced rate with a minimum rate of 12% per annum.

The financing agreement has an initial term of one year and automatically renews for successive one-year terms, unless terminated by the Company or its lender upon receiving 60 days prior notice. Funds advanced by the Factor are secured by the Company’s accounts receivable and inventories. As of March 29, 2013 the Company had reported excess payments to the Factor of $36,916 compared to March 30, 2012, where the Company had reported a liability to the Factor of $54,943.