XML 42 R12.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Note Receivable
12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Related Party Note Receivable

NOTE 6. RELATED PARTY NOTE RECEIVABLE

 

In January 2014, we entered into a Note Purchase and Sale Agreement under which we agreed to purchase a loan made to Tronco in order to take over the legal position as Tronco’ s senior secured lender. Effective August 2017, the Company fully reserved the related party note receivable of $6,979,043, which reduced the related party note receivable balance to $0. The Company continues to hold the 8,267,860 shares of the Company’s common stock as collateral. The Company will record a recovery of the loan upon receiving repayment of the note or interest in other income. Interest only is due December 31, 2019, 2020 and 2021, with a balloon payment of all unpaid interest and principal due upon maturity on December 31, 2022. The interest rate on the note prime plus .25%, which was 5.0% as of December 31, 2019.

 

In December 2019, the Board of Directors approved grants of restricted stock units to Troy and Annette Meier with an approximate value of $587,500. The Board and the Meiers decided in lieu of making such awards, the dollar value of such awards would be used to pay $327,238 on the Tronco Note and the remaining $260,262 was remitted for taxes on the Meiers behalf. Also in December 2019, the Board of Directors approved a bonus to Troy and Annette Meier of $630,000, of which $350,911 was used to pay down the Tronco Note and the remaining $279,089 was remitted for taxes on the Meiers behalf.

 

In December 2018, the Board of Directors approved a bonus to Troy and Annette Meier with an approximate value of $587,500. The Board and the Meiers decided a portion of the dollar value of such awards would be used to pay the annual interest on the Tronco Note of $211,741 and $190,045 remitted for taxes on the Meiers behalf. The remainder of $185,714 was given to the Meiers in the form of restricted stock units. See Note 10 – Share-Based Compensation.