Note 5 - Acquisition of CBC

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note

5—Acquisition

of CBC

On

December

 

31,

2013,

the Company acquired

80%

ownership of CBC and its affiliate, CBC Management Services, LLC for approximately

$5.9

million.

On

December

 

31,

2015,

the Company acquired the remaining

20%

ownership of CBC for

$1,800,000,

through the issuance of restricted stock valued at approximately 

$1,000,000

and

$800,000

in cash. Each of the

two

original principals received

61,652

shares of restricted stock at a fair market value of

$7.95

per share and

$400,000

in cash. An aggregate of

123,304

shares of restricted stock were issued as part of the transaction. These shares are subject to a

one

year lock-up period in which the holders cannot sell the shares. In addition, the shares are subject to certain sales restrictions following the initial lock-up period, which expired on

December

31,

2016

(see Note 

15

– Stock Based Compensation).

On

January

 

1,

2016,

the Company renewed the expiring

two

-year employment agreements of the

two

CBC principals for

one

year terms. The employment contracts of the original

two

principals expired at the end of

December

2016.

The Company did not renew those contracts. Ryan Silverman has been appointed as the new CEO effective

January

1,

2017

(see Note

11

– Commitments and Contingencies).