Cascade Designs, Inc. - Page 8




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          to Cascade by an assignment document, which was recorded with the           
          U.S. Patent and Trademark Office on March 19, 1979.  The                    
          assignment conveyed to Cascade "all letters patent, domestic and            
          foreign, which have issued or may issue thereon, whether said               
          Letters Patent issued directly or by * * * division".                       
          Selling Mattresses Is a Seasonal Business                                   
               The recreational mattress industry is a seasonal business;             
          most of Cascade's sales were made in late spring and early                  
          summer, and most of its sales revenue was received between July             
          and November.  Consequently, its cash-flow was also seasonal,               
          peaking in late fall and early winter.  However, to meet the                
          demands of the market during the peak sales season and to retain            
          its experienced work force, Cascade had to manufacture mattresses           
          year-round.                                                                 
               Each year, the demand for Cascade's mattresses increased               
          dramatically.  To keep pace with the market's increased demand,             
          each year Cascade manufactured more mattresses and increased its            
          inventory of goods available for sale.  This practice resulted in           
          the exhaustion of its financial resources by late spring of every           
          year.                                                                       
          The Manufacturing Facilities                                                
               For a short while, the first mattresses were manufactured in           
          a grimy machine shop where the press to manufacture the                     
          mattresses had been made.  Cascade required larger facilities to            






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Last modified: May 25, 2011