RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

On occasion, Haverford-Valley, L.C. (an entity owned by our Chief Executive Officer) and certain affiliated entities make travel arrangements for our executives and pay the travel related expenses incurred by our executives on company business. During the years ended December 31, 2016, 2015 and 2014, we reimbursed Haverford-Valley L.C. $703,000, $423,000, and $270,000, respectively, for these expenses.

On November 2, 2016 we entered into a Software Licensing Agreement with SiteHelix Inc. (the “SiteHelix Agreement”). Saum Noursalehi, our President, Retail, is the majority owner of SiteHelix. Pursuant to the SiteHelix Agreement, SiteHelix granted a non-exclusive, non-transferrable license to its proprietary software to us. The software is intended to improve customer conversion rates on our website. Pursuant to the SiteHelix Agreement, we will pay SiteHelix 20% of an amount, if any, intended to reflect the economic benefit of the software to us, as calculated by us. Either party may terminate the SiteHelix Agreement on 30 days’ notice to the other party. In addition to this and other termination rights, we may terminate the SiteHelix Agreement immediately at any time if we determine that we can obtain substantially the same services from an unrelated person or entity at a lower cost, or better services from an unrelated person or entity for substantially the same cost. During 2016 we did not pay or accrue any amount for payment to SiteHelix.

In December 2016, pursuant to the rights offering we made to all of our stockholders, our Chief Executive Officer, Dr. Patrick M. Byrne purchased 63,775 shares of our Series A Preferred stock from us for $1,000,000. In connection with the rights offering, we entered into a registration rights agreement with Dr. Byrne for his benefit and the benefit of any other affiliates of ours who acquired or acquire shares of the Series A Preferred or the Series B Preferred in or after the rights offering.