NOTE 7-RELATED PARTY TRANSACTIONS

BKF Capital Group (OTC:BKFG)

We entered into an agreement, dated March 1, 2015 with BKF Capital Group, Inc. (“BKF”). Pursuant to the agreement, BKF occupies and uses one furnished office, telephone and other services, located at our corporate offices, for a fee of $1,000 per month. As of February 1, 2017 this agreement was modified as BKF relocated and no longer occupied the furnished office. Accordingly, the fee was reduced to $250 per month. In addition, we will occasionally pay administrative expenses on behalf of BKF, and BKF will reimburse the Company. For the three months ended September 30, 2017 and 2016, BKF paid $750 and $3,000, respectively to the Company. For the nine months ended September 30, 2017 and 2016, BKF paid $3,000 and $9,000, respectively to the Company. Steven N. Bronson, our Chairman of the Board, President and Chief Executive Officer, is also the Chairman of the Board, Chief Executive Officer and majority shareholder of BKF. At September 30, 2017 and December 31, 2016, there were no unpaid amounts owed by BKF to us.

Qualstar Corporation (NASDAQ:QBAK)

The Company agreed to reimburse, or be reimbursed by, Qualstar Corporation (“Qualstar”) for our occupancy and use of a portion of their Simi Valley manufacturing location and other expenses paid by one company on behalf of the other. Steven N. Bronson, our Chairman of the Board, President and Chief Executive Officer, is also the President and Chief Executive Officer of Qualstar. Transactions with Qualstar are as follows:


	Three months ended September 30,
	2017				2016
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at June 30,	$	—	$	1	$	4	$	3

Billed to Qualstar by Interlink		1		—		5		—
Paid by Qualstar to Interlink		(1)		—		(9)		—

Billed to Interlink by Qualstar		—		3		—		10
Paid by Interlink to Qualstar		—		(3)		—		(10)

Balance at September 30,	$	—	$	1	$	—	$	3


	Nine months ended September 30,
	2017				2016
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at January 1,	$	2	$	1	$	—	$	6

Billed to Qualstar by Interlink		8		—		11		—
Paid by Qualstar to Interlink		(10)		—		(11)		—

Billed to Interlink by Qualstar		—		8		—		30
Paid by Interlink to Qualstar		—		(8)		—		(33)

Balance at September 30,	$	—	$	1	$	—	$	3