Item 8.01. Other Events.

On April 15, 2009, Graphics Arts Acquisition Corporation ("Acquisition Corp."), a wholly-owned subsidiary of Hirsch International Corp., declared an event of default with respect to a loan made to U.S. Graphic Arts, Inc. (doing business as US Screen Print & Inkjet Technology and herein referred to as "U.S. Graphics") pursuant to the Amended and Restated Business Loan Agreement, dated August 4, 2008, by and between Acquisition Corp. and U.S. Graphics, for U.S. Graphics' failure to make payments to Acquisition Corp. as such payments became due. Hirsch International Corp. owns 80% of the equity interests of U.S. Graphics, whose debt is eliminated in consolidation. The loan is secured by assets of U.S. Graphics, including, without limitation, machinery, equipment, inventory and intellectual property of U.S. Graphics, and Acquisition Corp. is in the process of seizing this collateral.

Acquisition Corp. has retained Lowery Machine & Supply, based in Greenville, South Carolina, to assist the company in securing its collateral. Acquisition Corp. is considering its options with respect to the assets and operations of U.S. Graphics and any related accounting considerations.