7. LONG-TERM DEBT

On March 9, 2012, the Company obtained a $4.5 million term loan from Sovereign Bank to be amortized over five years (the “Sovereign Term Facility ”). Sovereign Term Facility was used to purchase tooling and equipment for new programs. Sovereign Term Facility bears interest at the lower of LIBOR plus 3% or Sovereign Bank’s prime rate.

Additionally, the Company and Sovereign Bank entered into a five year interest rate swap agreement, in the notional amount of $4.5 million. Under the interest rate swap, the Company pays an amount to Sovereign Bank representing interest on the notional amount at a fixed rate of 4.11% and receives an amount from Sovereign Bank representing interest on the notional amount of a rate equal to the one-month LIBOR plus 3%. The effect of this interest rate swap will be the Company paying a fixed interest fixed rate of 4.11% over the term of the Sovereign Term Facility .

The maturities of long-term debt are as follows:

Twelve months ending March 31,
2015	993,139
2016	957,325
2017	920,092
2018	75,000

	$2,945,556

In addition to the Sovereign Term Loan , included in long-term debt are capital leases and notes payable of $170,557, including a current portion of $93,139.