The following schedule represents the expiration of Nathan’s other contractual commitments by maturity (in thousands): Management believes that available cash, marketable investment securities, and internally generated funds should provide sufficient capital to finance our operations for at least the next twelve months. We currently maintain a $5,000,000 uncommitted bank line of credit and have never borrowed any funds under any lines of credit. Our business is affected by seasonal f luctuations, the effects of weather and economic conditions. Historically, restaurant sales from Company-owned restaurants, franchised restaurants from which roy- alties are earned and earnings have been highest during our first two fiscal quarters with the fourth fiscal quarter representing the slowest period. This seasonality is primarily attributable to weather condi- tions in our marketplace for our Company-owned Nathan’s stores, which is principally the New York metropolitan area. Miami Subs’ restaurant sales have historically been strongest during the period March through August, which approximates our first and second quarters, as a result of a heavy concentration of restaurants being located in Florida. Notwithstanding the continued growth of our Branded Product Program and the changing composition of our restaurants, we believe that future revenues and profits will continue to be highest during our first two fiscal quarters with the fourth fiscal quarter representing the slowest period. During the past three years, our commodity costs for beef have f luctuated significantly while other costs have remained relatively  stable. As such, we believe that general inf lation has not materially We have invested our marketable investment securities in intermediate term, fixed rate, highly rated and highly liquid instruments. These investments are subject to f luctuations in interest rates. As of March 28, 2004, the market value of Nathan’s marketable investment securities aggregated $7,477,000. Interest income on these marketable investment securities would increase or decrease by approximately $18,700 per annum for each .25% change in interest rates. The following chart presents the hypothetical changes in the fair value of the marketable investment securities held at March 28, 2004 that are sensitive to interest rate f luctuations (in thousands): We have historically invested our cash and cash equivalents in short term, fixed rate, highly rated and highly liquid instruments which are reinvested when they mature throughout the year. Although our existing investments are not considered at risk with respect to changes in interest rates or markets for these instruments, our rate of return on short-term investments could be affected at the time of reinvestment as a result of intervening events. As of March 28, 2004, Nathan’s cash and cash equivalents aggregated $3,369,000. Earnings on these cash and cash equivalents would increase or decrease by approxi- mately $8,400 per annum for each .25% change in interest rates. impacted earnings during that period of time. However, during the first half of the fiscal 2002 period, commodity prices of our primary beef products reached their highest levels in many years. Throughout fiscal 2003, these costs were in line with historical norms. During fiscal 2004, the price of our beef products has risen dramatically over historical norms and particularly as compared to fiscal 2003. We also experienced increased costs for utilities and insurance during the fiscal 2002, 2003 and 2004 periods. In 2002, various Federal and New York State legislators proposed changes to the minimum wage requirements, however, none of the proposals were enacted. Although we only operate seven Company-owned restaurants, we believe that signifi- cant increases in the minimum wage could have a significant finan- cial impact on our financial results. Prolonged increases in labor, food and other operating expenses could adversely affect our operations and those of the restaurant industry and we might have to reconsider our pricing strategy as a means to offset reduced operating margins.  Total Amount of Commitment Expiration Per Period Amounts Less than After Other Contractual Commitments Committed 1 Year 1–3 Years 3–5 Years 5 Years Loan guarantees $566 $213 $347 $6 $—  Total commercial commitments $566 $213 $347 $6 $— Valuation of Securities Valuation of Securities Given an Interest Rate Given an Interest Rate Decrease of X Basis Points Fair Increase of X Basis Points (150BPS) (100BPS) (50BPS) Value +50BPS +100BPS +150BPS Municipal notes and bonds $7,845 $7,716 $7,596 $7,477 $7,361 $7,248 $7,138 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page eleven Marketable Investment Securities Seasonality Cash and Cash Equivalents Inflationary Impact