Subsequent Events

12 Months Ended

Dec. 31, 2016

Note 16 – Subsequent Events

On March 30, 2017, the Company entered into the First Amendment to the Loan and Security Agreement (the “Amendment”) with Sterling National Bank (“Sterling”) The Amendment amended the definition of certain items used in the calculation of the fixed charge coverage ratio and deferred the first measurement period of the financial covenants until January 31,2017. The Amendment also contained other customary representations, covenants, terms and conditions. In connection with the Amendment, the Company will pay Sterling $15.

On March 21, 2017, the Company and its wholly-owned subsidiary, R.L. Drake Holdings, LLC (“Drake”), as borrowers and Robert J. Pallé, as agent (in such capacity “Agent”) and as a lender, together with Carol M. Pallé, Steven Shea and James H. Williams as lenders (collectively, the “Subordinated Lenders”) entered into a First Amendment (the “Amendment”) to the Amended and Restated Senior Subordinated Convertible Loan and Security Agreement (the “Subordinated Loan Agreement”),The Amendment revised certain provisions of the Subordinated Loan Agreement dated March 28, 2016 by and between the Borrower, the Agent and the Subordinated Lenders . In particular, the Amendment eliminated Section 4.4(e)(ii) of the Subordinated Loan Agreement, which provided for certain adjustments to the conversion price used in calculating the number of shares to be received by the Subordinated Lenders on conversion of outstanding amounts under the Subordinated Loan Agreement in the event the Company issued additional shares of its common stock at a price less than the conversion prices provided in the Subordinated Loan Agreement. The Amendment also eliminated certain defined terms related to the provisions of Section 4.4(e)(ii).