Note 2 - Connect

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Noncontrolling Interest Disclosure [Text Block]

2. CONNECT

Connect was formed in June 2013 to develop and commercialize the Connect programs. Connect programs provide healthcare organizations the technology to engage patients through real-time identification and management of individual patient needs, preferences, risks, and experiences.  The platform ensures that organizations have access to a longitudinal view of the patient to more effectively manage patient engagement across the continuum of care.

As of December 31, 2015, the Company owned approximately 89% of Connect and Illuminate Health, LLC owned 11% of Connect. Under the amended Connect operating agreement, NRC had the option to acquire additional equity units from Illuminate Health when new annual recurring contract value reached targeted levels. On March 7, 2016, NRC elected to exercise its first option to acquire one-third of the outstanding non-controlling interest for $1.0 million. Subsequently, on March 28, 2016, NRC and Illuminate Health reached an agreement whereby NRC acquired the remaining interest held by Illuminate Health for $1,000,000. Following these transactions, Connect is a wholly owned subsidiary of NRC. Since the Company previously consolidated Connect, the transaction was accounted for as an equity transaction, resulting in a reduction to additional paid in capital.