|10. Related Party
The Companys wholly owned subsidiary,
Steiner-Atlantic, leases 27,000 square feet of warehouse and office space from an affiliate of Michael S. Steiner, a director and
Executive Vice President and Chief Operating Officer of the Company, pursuant to a lease agreement dated November 1, 2014. Under
the lease, which has a term of three years, monthly base rental payments were $10,275 during the first year of the lease, and are
$10,580 during the second year of the lease and $10,900 during the third year of the lease. In addition to base rent, Steiner-Atlantic
is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Expenses
under this lease, including rent and property taxes, were approximately $161,000 for each of fiscal 2016 and 2015.
The Company paid a
law firm, in which a former director of the Company who retired from Board service during November 2015 is Senior Counsel, approximately
$15,000 in fiscal 2016 and $83,500 in fiscal 2015, for legal services performed.