Note 12 - Related Party Transactions

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

1

2

– RELATED PARTY TRANSACTIONS

Steven N. Bronson is the Company’s CEO and is also the President and CEO and a majority shareholder of Interlink Electronics, Inc. (“Interlink”) and BKF Capital Group, Inc. (“BKF”). Interlink reimburses Qualstar for leased space at the Camarillo facility and prior to the Company’s entry into the Sublease, described in Note

10,

for leased space at the Simi Valley facility. Interlink also reimburses the Company for other administrative expenses paid by or on behalf of the Company. The total amount charged to Interlink for the

three

months ended

September 30, 2019

and

2018

was

$15,000

and

$4,000,

respectively and

$25,000

and

$12,000

for the

nine

months ended

September 30, 2019

and

2018.

Interlink owed Qualstar

$7,000

and

$2,000

at

September 30, 2019

and

December 31, 2018,

respectively.

The Company reimburses Interlink for expenses paid on the Company’s behalf. Interlink occasionally pays travel, consulting and other expenses incurred by Qualstar. The Company reimbursed Interlink

$45,000

and

$50,000

for the

three

months ended

September 30, 2019

and

2018,

respectively and

$103,000

and

$180,000

for the

nine

months ended

September 30, 2019

and

2018,

respectively. Qualstar did

not

owe Interlink as of

September 30, 2019.

At

December 31, 2018,

Qualstar owed Interlink

$2,000.

The Company reimburses BKF for expenses paid on the Company’s behalf. BKF occasionally pays consulting expenses incurred by Qualstar. BKF did

not

incur any expenses on behalf of Qualstar during the

three

months ended

September 30, 2019

and

no

expenses were reimbursed by the Company to BKF during such period. The Company did reimburse BKF

$2,000

for the

nine

months ended

September 30, 2018

for expenses incurred on the Company’s behalf. Qualstar did

not

owe BKF any monies at

September 30, 2019

and owed

$2,000

as of

December 31, 2018.