Note 10 - Related Party Transactions

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 10.    Related Party Transactions 

The Company’s Gamma Knife business is operated through its 81% indirect interest in its GKF subsidiary. The remaining 19% of GKF is owned by a wholly owned U.S. subsidiary of Elekta, which is the manufacturer of the Gamma Knife. Since the Company purchases its Gamma Knife units from Elekta, there are significant related party transactions with Elekta such as equipment purchases, commitments to purchase and service equipment, and costs to maintain the equipment. The Company believes that all its transactions with Elekta are arm’s-length transactions.

The following table summarizes related party activity for the three and nine-month periods ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Equipment purchases and de-install costs	$	231,000	$	97,000	$	1,594,000	$	1,616,000
Costs incurred to maintain equipment		272,000		125,000		820,000		593,000
Total related party transactions	$	503,000	$	222,000	$	2,414,000	$	2,209,000

The Company also had commitments to purchase one Icon, install four Icon upgrades, purchase two Gamma Plan workstations and service the related equipment of $10,551,000 as of   September 30, 2022 and commitments to purchase one Icon, install four Icon upgrades and service the related equipment of $6,624,000 as of   December 31, 2021.  At September 30, 2022, the Company owed Elekta approximately $748,000for software, contract maintenance, and de-install costs.  At December 31, 2021, the Company owed Elekta approximately $1,992,000 for the Cobalt-60 reload completed in the fourth quarter of 2021, software, contract maintenance, and de-install costs. 

Related party liabilities consist of the following as of  September 30, 2022 and December 31, 2021

	September 30,		December 31,
	2022		2021
Commitments	$	10,551,000	$	6,624,000
Accounts payable and other accrued liabilities	$	748,000	$	1,992,000