SUBSEQUENT EVENTS

9 Months Ended

Dec. 31, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Note 7.   SUBSEQUENT EVENTS

Except for the event explained below, we evaluated all of our activity and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our financial statements.

On January 30, 2012, we entered into an amendment to our credit facility agreement with Silicon, effective January 23, 2012, pursuant to which Silicon has agreed to extend our credit facility through March 23, 2012, subject to the conditions set forth in the agreement. Our borrowing under the credit facility agreement is limited by our eligible receivables and inventory at the time of borrowing. The amendment provides that our inventory borrowing base is calculated as 35% of our eligible receivables, with a $400,000 limitation. Further, the amendment requires us to maintain an adjusted cash balance of $250,000. Under the amendment, our interest rate was increased to Silicon’s prime rate of 4% plus 3.5% and requires additional reporting requirements.