ACCOUNTS RECEIVABLE FINANCING

9 Months Ended

Dec. 25, 2015

ACCOUNTS RECEIVABLE FINANCING [Abstract]

ACCOUNTS RECEIVABLE FINANCING

Note 6 - ACCOUNTS RECEIVABLE FINANCING:

The Company entered into 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 2.5% 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 will automatically renew for successive one-year terms, unless terminated by the Company or the Factor upon receiving 60 days prior notice. Funds advanced by the Factor are secured by the Company's accounts receivable and inventories.

At December 25, 2015, the Company had reported excess payments to the Factor resulting in overpayments of $492,744, which the Company will apply against future borrowings. These excess payments are reported in the accompanying financial statements as of December 25, 2015 as “Excess payments to accounts receivable factor.” As of March 27, 2015, the Company had reported excess payments to the Factor of $43,041.