NOTE B ? FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES For the fiscal year ended March 31, 2015, the Company reported losses from domestic operations in the amount of $ 2,601,426 on sales of $ 9,891,554 . Furthermore, during the fiscal year ended March 31, 2015, working capital (computed as the excess of current assets over current liabilities) decreased by $ 2,543,227 from $ 8,154,779 on March 31, 2014, to $ 5,611,552 on March 31, 2015. Our short-term borrowings to finance trade accounts receivable and foreign inventory purchases are provided pursuant to the terms of our Factoring Agreement with Merchant. The Company previously reported that advances from the Company s factor, were at the sole discretion of Merchant based on their assessment of the Company s receivables, inventory and financial condition at the time of each request for an advance. Subsequent to that report, management has entered into discussions with Merchant to stipulate that Merchant will provide advances unless the Company is in default or the Company s dilution percentage changes substantially. Management anticipates that our agreement with Merchant will be modified to reflect these changes but we are not certain Merchant will agree to such changes, or that they will agree on terms that are acceptable to the Company. In addition we have secured additional inventory financing of $ 1,000,000 from our Hong Kong Joint Venture for the purchase of the new sealed battery products. This unsecured inventory financing bears interest at 3.25 %, and provides for repayment terms of ninety days for each advance thereunder. We anticipate introducing our new line of sealed smoke and carbon monoxide (CO) alarms later this fiscal year, These sealed products will compete on price and functionality when we introduce them to the market with similar products offered by our larger competitors. While we believe there will be market acceptance of our new products we cannot be assured of this. Should our products not achieve the level of acceptance we anticip