ACCOUNTS RECEIVABLE FINANCING:

3 Months Ended

Jun. 28, 2019

Receivables [Abstract]

ACCOUNTS RECEIVABLE FINANCING

Note 6-  ACCOUNTS RECEIVABLE FINANCING: 

The Company entered into an accounts receivable financing agreement with a non-bank lending institution (“Financing 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 its lender upon receiving 60 days’ prior notice. Funds advanced by the Finance Company are secured by IEH’s accounts receivable and inventories.

As of June 28, 2019, the Company reported excess payments to its Finance Company of $705,623. These excess payments are reported in the accompanying condensed Financial Statements as of June 28, 2019 as “Excess payments to commercial finance company.” As of March 29, 2019, the Company had reported a liability to its commercial finance company of $334,306.