On August 22, 2016, the Company entered into an amendment to its Revised Loan Agreement with its lender (see Note 7 – “Long Term Debt”), which waived the Company’s non-compliance with its minimum quarterly FCCR for the second quarter of 2016. In addition, the amendment revised the methodology to be used in calculating the FCCR in each of the subsequent quarters of 2016 and first quarter of 2017 and revised the maintenance requirement by the Company of its Tangible Adjusted Net Worth (as defined in the Revised Loan Agreement) at all periods from $30,000,000 to $26,000,000.   

 

As discussed in Note 7 – “Long Term Debt”, the Company issued a Warrant to each of the two Lenders in connection with a loan dated August 2, 2013. On August 2, 2016, each Lender exercised his Warrant for the purchase of 35,000 shares of our Common Stock, resulting in total proceeds paid to the Company of approximately $156,000.