SUBSEQUENT EVENTS |
12 Months Ended |
|---|---|
Dec. 31, 2016 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE V – SUBSEQUENT EVENTS
Departure and Appointment of Certain Officers
On January 10, 2017, the Board of Directors (the "Board") of the Company terminated the employment of Marc Zionts as Chief Executive Officer. Under the terms of his employment agreement, Mr. Zionts was required to resign as a member of the Board of Directors and comply with certain other restrictive covenants.
Effective January 11, 2017, the Board appointed Kelly Gay as Chief Operating Officer.
Effective January 13, 2017, Vincent Costello, Chief Revenue Officer, separated from the Company.
Effective March 20, 2017 Sri Ramachandran, Chief Technology Officer, separated from the Company.
Senior Subordinated Promissory Note
On March 31, 2017, the Kenneth Rainin Foundation, a California corporation, and the Company entered into a Senior Subordinated Promissory Note in the amount of $5 million, with a maturity date of April 1, 2018, and an annual interest rate of 12%, which was used to pay down the outstanding debt with Crystal. Brian Igoe, a director of the Company, has a financial and other interests in the Kenneth Rainin Foundation such that Mr. Igoe is a related party.
Crystal Financial LLC Amendment and Waiver
On March 31, 2017, we entered into an amendment to the Crystal Loan Agreement to modify the covenants related to minimum adjusted EBITDA, minimum fixed charge coverage ratio, maximum net leverage, and maximum subscriber churn. Pursuant to the terms of the amendment we are required to prepay $2.0 million of principal on June 1, 2017, unless we have entered into a sale transaction prior to that date. |