RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2016

NOTE 7 — RELATED PARTY TRANSACTIONS

Borrowings: From time to time, the Company receives short-term, non-interest bearing loans from Tandon Enterprises, Inc. for the purpose of funding temporary working capital needs. For the six months ended June 30, 2016, the Company borrowed $24,000, net of repayments. The $346,100 owed to Tandon Enterprises at June 30, 2016 was converted into 76,911 shares of common stock and warrants at the effective date of the Offering.

In September 2015 David Clarke, the Company’s Chairman of the Board and a significant stockholder of the Company, loaned the Company $100,000 further to a promissory note bearing interest at 5% per annum, principal and unpaid interest payable on demand. In addition, Mr. Clarke incurred expenses on behalf of the Company totaling approximately $50,000. Subsequent to June 30, 2016, the loan and liability related to the expenses were converted into 33,333 shares of common stock and 33,333 warrants at the public offering price of $4.50.

Due to related parties consists of the following at December 31, 2015 and June 30, 2016 (in thousands):

	December 31, 2015		June 30, 2016
Tandon Enterprises, Inc.	$	322	$	346
SDJ Partners LLC		88		88
Shareholders/Officers		100		100
Total	$	510	$	534