Just because their compensation is based on EBITDA I would not necessarily assume that their breakeven is based on the same. I hope not at least... Both either way, that would be a significant increase in revenues and I am sure cash flow breakeven would follow a quarter later or so...
Effective July 1, 2016, David R. LaVance, the Company’s President and Chief Executive Officer and Thomas S. Gifford, the Company’s Executive Vice President and Chief Financial Officer, each agreed to reduce their respective annual salary to $110,000. Prior to the reduction, Mr. LaVance’s annual salary was $235,000 and Mr. Gifford’s annual salary was $200,000. The reduced salaries will remain in effect until: (a)(i) IET reaches positive earnings before interest, taxes, depreciation and amortization, adjusted for non-cash expenses (“Adjusted EBITDA”), for one calendar quarter, and (ii) the subsequent calendar quarter Adjusted EBITDA is projected to remain positive, factoring in the increased salaries for each of Mr. LaVance and Mr. Gifford, or (b) some other corporate activity occurs whereby an adjustment is justified, as determined by the Company’s compensation committee.
