Note 21 - Related Party Transactions

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

21—Related

Party Transactions

On

December

 

12,

2011,

the Company and Piccolo Business Advisory (“Piccolo”), which is owned by Louis Piccolo, a director of the Company, entered into a Consulting Agreement, pursuant to which Piccolo provided consulting services which included, but was not limited to, analysis of proposed debt and equity transactions, due diligence and financial analysis and management consulting services (“Services”). The Consulting Agreement was for a period of

two

years, which ended on

December

 

31,

2013.

This agreement was not immediately renewed. 

On

September

 

17,

2015,

the Company and Piccolo agreed to terms to a new

two

-year,

$80,000

contract, pursuant to which Piccolo will provide consulting services, as described above. The compensation is to be paid quarterly. For the

three

months ended

December

 

31,

2016,

the Company booked a liability of

$20,000

to Piccolo for such services which was paid on

January

6,

2017.

In addition, A. L. Piccolo & Co., Inc. (“ALP”), which is also owned by Louis Piccolo, received a fee from Pegasus which was calculated based on amounts loaned to Pegasus by Fund Pegasus up to maximum of

$700,000.

The fee is payable over

six

years including interest at

4%

per annum from Pegasus during the term of the Pegasus Operating Agreement that expired on

December

28,

2016.

Thereafter, it is payable by PLF and its affiliates.  Pegasus paid ALP

$

33,000

for the

three

months ended

December

31,

2016

and

2015.