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Related Party Transactions | 12 Months Ended
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Mar. 31, 2019
Related Party Transactions [Abstract] |
Related Party Transactions | NOTE 14 – RELATED PARTY TRANSACTIONS DUE TO/FROM RELATED PARTIES On March 31, 2019 and 2018, the Company had approximately $0.3 million and $1.2 million, respectively due from related parties for goods and services sold these companies. In connection with the renewal of the Revolving Credit Facility on June 22, 2017, the amount due of approximately $1.9 million to Starlight Marketing Development, Ltd. (“Starlight Debt”) remained subordinated however, PNC Bank authorized a two-year term note in the amount of $1.0 million the proceeds of which were to be used to pay down a portion of the Starlight Debt leaving a balance due on the Starlight Debt of approximately $0.8 million. The term note bears interest at 1.75% per annum over PNC’s announced prime rate or 1, 2, or 3 month PNC LIBOR Rate plus 3.75%. The term note is payable in quarterly installments of $125,000 plus accrued interest. Provision has also been made to allow repayment of the remaining approximately $0.8 million in quarterly installments of $123,000 including interest accrued at 6% per annum commencing August 1, 2017 provided liquidity tests as defined in the original agreement are met. Due to liquidity issues caused by the bankruptcy of our second largest customer, the company was only able to make one scheduled payment on the Starlight Debt during the prior fiscal year. The remaining Starlight Debt of approximately $0.8 million has been classified as current in the accompanying consolidated balance sheet as the Company intends to pay the remaining balance over the next twelve months. TRADE During Fiscal 2019 and 2018 the Company paid approximately $0.4 million and $0.3 million, respectively to Starlight Electronics Company, Ltd (“SLE”) as reimbursement for engineering quality control and other administrative services performed on our behalf in China. During Fiscal 2019 and 2018 the Company paid non-recurring engineering fees to SLE of approximately $21,000 and $43,000, respectively. These expense reimbursements were included in general and administrative expenses on our consolidated statements of income. During Fiscal 2019 and 2018 the Company sold approximately $1.2 million and $1.5 million, respectively of product to Winglight Pacific, Ltd. (“Winglight”) a related company, for direct shipment to Cosmo Communications of Canada, Ltd (“Cosmo”), another related company, at discounted pricing granted to major direct import customers shipped internationally with freight prepaid. The average gross profit margin on sales to Winglight for Fiscal 2019 and 2018 was 30.1% and 21.8%, respectively. These amounts were included as a component of net sales in the accompanying consolidated statements of income. During Fiscal 2019 and 2018 the Company sold approximately $0.4 million and $0.6 million, respectively of product to Cosmo from our California warehouse facility. These goods were sold at a discounted price, similar to prices granted to major direct import customers shipped internationally with freight prepaid. The average gross profit margin on sales to Cosmo yielded 22.5% and 24.6%, respectively. These amounts were included as a component of net sales in the accompanying consolidated statements of income. In Fiscal 2019 and 2018 the Company paid approximately $0.1 million and $0.2 million, respectively to Merrygain Holding Company, Ltd. (a related party subsidiary) for storage fees and other services provided to the Company by this subsidiary. These amounts were included as a component of general and administrative expenses in the accompanying consolidated statements of income.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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