RELATED PARTY TRANSACTION

9 Months Ended

Dec. 30, 2012

RELATED PARTY TRANSACTION

NOTE 7.       RELATED PARTY TRANSACTION

Affiliates of Future Electronics Inc. (“Future”), Alonim Investments Inc. and two of its affiliates (collectively “Alonim”), own approximately 7.6 million shares, or approximately 17%, of our outstanding common stock as of December 30, 2012. As such, Alonim is our largest stockholder.

Our sales to Future are made under a distribution agreement that provides protection against price reduction for its inventory of our products and other sales allowances which are similar to those provided to certain other distributor partners. We recognize revenue on sales to Future when Future sells our products to its end customers. Future has historically accounted for a significant portion of our net sales.

Related party contributions to our total net sales for the periods indicated below were as follows:

	Three Months Ended						Nine Months Ended
	December 30, 2012			January 1, 2012			December 30, 2012			January 1, 2012
Future		28	%		30	%		30	%		30	%

Related party expenses for marketing promotional materials reimbursed were not significant in either the three or nine months ended December 30, 2012 or January 1, 2012, respectively.