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Note 6. Related-party Transactions
3 Months Ended
Sep. 30, 2012
Notes  
Note 6. Related-party Transactions

NOTE 6.  RELATED-PARTY TRANSACTIONS

 

The Company leases office and warehouse space in Detroit, Michigan; Hopkins, Minnesota; and Pleasanton, California from three stockholders and former independent distributors on an annual basis under operating lease arrangements. Management believes the lease agreements are on an arms-length basis and the terms are equal to or more favorable than would be available to third parties. The expense associated with these related-party transactions totaled $37,800 and $39,000 for the three months ended September 30, 2012 and 2011, respectively.