NOTE 12 – SUBSEQUENT EVENTS

On March 8, 2018, the Company and KIM entered into an amendment to the Loan and Security Agreement with Gerber. Pursuant to this amendment, the aggregate principal amount of the Revolving Line at any time outstanding was increased to $4.0 million and the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time outstanding cannot exceed the lesser of (i) 40% of the value of certain inventory and (ii) 50% of certain accounts receivable .

Subsequent to February 28, 2018 and through April 3, 2018, the Company issued 564,360 shares related to stock sold to investors for $2,480,000.