XML 29 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 6. Related-party Transactions
3 Months Ended
Dec. 31, 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 shareholders 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 $31,500 and $39,000 for the three months ended December 31, 2012 and 2011, respectively, $69,300 and $78,000 for the six months ended December 31, 2012 and 2011, respectively. In December, 2012, the Company moved its Pleasanton office/warehouse to a new, larger location in Livermore, California and entered into a lease agreement with an unaffiliated third party.