Annual report pursuant to Section 13 and 15(d)

Note 16 - Subsequent Events

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Note 16 - Subsequent Events
12 Months Ended
Mar. 28, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]
Note
16
Subsequent Events
 
On
May 5, 2021,
the Board approved the closure of Carousel due to a history of high costs, declining sales and operating and cash flow losses, as well as management's determination that such losses were likely to continue. Accordingly, the operations of Carousel ceased at the close of business on
May 21, 2021.
During its fiscal year ending
April 3, 2022,
the Company expects to incur
$100,000
in costs associated with the termination and/or relocation of Carousel employees and contract termination costs in connection with the closure of Carousel ranging from
$200,000
to
$500,000.
 
On
May 13, 2021,
the Company and CIT entered into an agreement whereby CIT's lien on Carousel's assets will be automatically released upon the sale of such assets.
 
On
May 20, 2021,
the PPP Loan was forgiven in full and the SBA remitted to the Lender on that date the principal amount of the Note of
$1,963,800
and interest of approximately
$22,000
that had accrued from the funding date of
April 20, 2020
through the forgiveness date of
May 20, 2021.
During the
three
-month period ending
June 27, 2021
and the fiscal year ending
April 3, 2022,
the Company anticipates that it will recognize a gain from the extinguishment of the full amount of the PPP Loan.
 
On
May 31, 2021
the Company's financing agreement with CIT was amended to extend the maturity date to
July 11, 2025
and to change the interest rates to prime minus
1.0%
or LIBOR plus
1.5%,
effective as of
May 31, 2021.
The financing agreement was also amended to provide for a transition from the LIBOR reference rate to its replacement at the appropriate time.
 
The Company has evaluated events that have occurred between
March 28, 2021
and the date that the accompanying financial statements were issued, and has determined that there are
no
other material subsequent events that require disclosure.