Note 8 - Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions Disclosure [Text Block]

(8)           Related Party Transactions

The Senior Secured Revolving Credit Facility contains a provision requiring the Company to use a third party to perform financial due diligence for acquisitions exceeding a certain size. With the approval of the senior lender, the Company engaged RedRidge Finance Group (“RedRidge”) to assist it with financial due diligence and incurred $143,000 and $187,000  in fees pertaining to acquisition-related work performed during the three and six months ended June 30, 2011, respectively.  The Company incurred $120,000 in fees pertaining to acquisition-related work performed during the three and six months ended June 30, 2012.   P&P Investment, LLC (“P&P”), a company owned by Richard Perlman and James Price, the Executive Chairman and Chief Executive Officer, respectively, of the Company, is a minority owner and lender of RedRidge.  P&P, Mr. Perlman and Mr. Price have waived any ownership right P&P had to any portion of the diligence fees paid by the Company to RedRidge.

In June 2010, the Company entered into a lease agreement with Compass Partners, L.L.C. (“Compass”) for corporate office space located at 655 Madison Avenue, 23rd Floor, New York, NY. Pursuant to the lease, which runs from April 1, 2010 through June 30, 2014, the Company paid Compass a rental fee of $10,080 per month in 2010, which fee is subject to increase based on a proportionate pass through of base rent increases and increases for property taxes and building operating expenses. In the three and six months ended June 30, 2011, the Company paid Compass $35,000 and $68,000 in rental payments, respectively.   In the three and six months ended June 30, 2012, the Company paid Compass $31,000 and $63,000 in rental payments, respectively. Compass is owned by Richard Perlman, the Company’s Executive Chairman.