NOTE 18 – SUBORDINATED RELATED PARTY DEBT

On July 14, 2014, the Company executed the three-year Revolving Credit Facility with PNC Bank, National Association (“PNC”) that replaced the existing line of credit agreement with Crestmark Bank. In connection with the Revolving Credit Facility the Company was required to subordinate related party debt from and Starlight Marketing Development, Ltd. in the amount of $1,924,431. Since the agreement expires beyond the next fiscal year, the subordinated related party debt was classified as a long-term liability on the accompanying balance sheet as of March 31, 2015.

During the fiscal year ended March 31 2014 and in connection with the line of credit with Crestmark Bank the Company was required to subordinate related party debt from Ram Light Management, Ltd. in the amount of $1,683,247 and Starlight Marketing Development, Ltd. in the amount of $816,753. Since the subordination agreements were in effect throughout the term of the agreement, the amounts due were not payable until the agreement was scheduled for termination on October 12, 2014. Since the agreement expired within one year the subordinated related party debt was classified as a current liability on the accompanying consolidated balance sheet as of March 31, 2014.