ACCOUNTS RECEIVABLE FINANCING

9 Months Ended

Dec. 28, 2018

Receivables [Abstract]

ACCOUNTS RECEIVABLE FINANCING

Note 6-  ACCOUNTS RECEIVABLE FINANCING: 

The Company entered into an accounts receivable financing agreement with a commercial finance company, whereby it can borrow up to 80 percent of its eligible receivables (as defined in the financing agreement) at an interest rate of 2.5% above JP Morgan Chase’s publicly announced rate with a minimum rate of 6% 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 commercial finance company upon receiving 60 days’ prior notice. Funds advanced by the commercial finance company are secured by IEH’s accounts receivable and inventories.

As of December 28, 2018, the Company reported a liability to the commercial finance company of $228,757. As of March 30, 2018, the Company had reported excess payments to the commercial finance company of $154,960. These excess payments are reported in the accompanying financial statements as of March 30, 2018 as “Excess payments to commercial finance company.”