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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

Settlement of ERC Matter 

On September 26, 2014, Environmental Research Center, Inc., a California non-profit corporation (“ERC”) issued a 60-day notice (“Notice”) of intent to file suit against ourselves and NDS Nutrition Products, Inc. (“NDS”) for alleged labeling violations of California Health & Safety Code Sec. 25249.5 et seq., commonly referred to as “Proposition 65”.  After months of negotiations, ERC sent the Company its demand for $300,000 in fines and fees in September of 2015.  ERC filed suit on October 22, 2015, but did not serve the Company with requisite notice until December 2015. The parties reached a settlement for $90,000 and executed a Consent Judgment on December 31, 2015.  The hearing to approve the Consent Judgment was heard before the Superior Court of California, County of Alameda, on April 12, 2016.  The settlement was approved, and the Company paid $90,000 in settlement on April 18, 2016.

 

Waiver of Term-Loan Covenants 

On or around May 12, 2016, the Company received a waiver of compliance for certain financial covenants in its existing five-year term loan and revolving line of credit with the Bank for the current period ended March 31, 2016.

 

Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date through the filing of this Quarterly Report on Form 10-Q and determined that no additional subsequent events occurred.