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Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

19. Subsequent Events


On March 9, 2020 the Company entered into a Revolving Credit Agreement with Christian Meissner pursuant to which Mr. Meissner agreed to make a $250,000 credit line available to us from time to time until September 30, 2020.  Our ability to draw amounts under the credit line is at the discretion of Mr. Meissner.  Under the terms of the Agreement, amounts we borrow from Mr. Meissner will be evidenced by a 5% Senior Secured Revolving Note.  The Note will pay interest at the rate of 5% per annum, matures on September 30, 2020 and our obligations thereunder are secured by a first position security interest in our assets as evidenced by a Security Agreement of even date by and between the Company and Mr. Meissner.  Our secured creditor, Mr. Joseph V. Vittoria, our Executive Chairman, entered a Subordination Agreement subordinating his first position security interest in our assets which secures a Senior Secured Promissory Note in the principal amount of $8,385,132 due Mr. Vittoria to Mr. Meissner.


On March 9, 2020 we drew an initial $100,000 under this credit line and on March 12, 2020 used $33,618 of the proceeds to satisfy our obligations under the Business Loan Agreement with Kabbage dated October 24, 2019. We are using the balance of the proceeds for working capital. On April 1, 2020 the Company drew down an additional $100,000 under the credit line.


On March 9, 2020 the Company, upon recommendation and approval by the Board of Directors, granted its Chief Executive Officer options to purchase 3,500,000 shares of the Company’s common stock, at an exercise price of $0.012 per share. The options vest upon date of grant and expire March 8, 2025.


On March 9, 2020, the Company granted its President who is also a member of the Board of Directors options to purchase 3,350,000 shares of the Company’s common stock, at an exercise price of $0.011 per share. The options vest upon date of grant and expire March 8, 2030.


On March 9, 2020, the Company granted several employees options to purchase 4,050,000 shares of the Company’s common stock, at an exercise price of $0.011 per share. The options vest upon date of grant and expire March 8, 2030.


The Company’s operation has been materially and adversely impacted by the Covid-19 pandemic. The Company is located in Palm Beach County, Florida which is subject to a “stay at home” order effective April 3, 2020. While the Company is able to continue operations as a non-consumer facing company that can fulfill shipments with a minimal staff that can maintain social distancing, the Company has reduced operations to approximately 1 day per week. While the stay at home order is presently set to expire on May 1, 2020, there are no assurances the Florida governor will not extend the duration of the stay at home order for an unknown additional period of time. Until this stay at home order is lifted and the Company can resume its normal operations, the Company is unable to predict the impact of the Covid-19 pandemic at this time.


On or about April 9, 2020 a former employee of the Company filed a complaint in the circuit court of the 15th judicial circuit in and for Palm Beach County, Florida, alleging breach or oral contract for failure to pay deferred salary, demanding relief of approximately $356,500 in deferred salary, plus applicable interests and attorneys’ fees and costs. While as of the date of this filing the Company has not been served with the complaint, the Company intends to vigorously defend itself against the claims.


On April 13, 2020, the maturity date for $25,000 loan received on January 7, 2019 from a stockholder and former member of the Board of Directors was extended from January 7, 2020 to December 31, 2020.