Note 16 - Subsequent Events |
12 Months Ended |
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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. |