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 in Westlake Village, CA, 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.

On March 1, 2018, BFK leased executive office space in Charleston, SC. Interlink intends to use a portion of this office space for a fee of $2,465 per month. BKF still intends to utilize a portion of the Interlink offices in California for a fee of $250 per month. Effective March 1, 2018 we modified the existing agreement and entered into a cost-sharing agreement with Interlink that calls for a monthly net settlement of all shared costs between the use of the California and the South Carolina offices, including rent, administrative expenses and similar costs.

For the three months ended March 31, 2018 and 2017, BKF paid $750 and $1,500, respectively to the Company. The Company incurred costs to BKF of $2,465 and $0 for the three months ended March 31, 2018 and 2017, respectively. 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 March 31, 2018 and December 31, 2017, there were no unpaid amounts owed by BKF to us. At March 31, 2018 the company’s outstanding balance due BKF was $2,215.

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 March 31,
	2018				2017
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at January 1,	$	17	$	—	$	2	$	1

Billed to Qualstar by Interlink		64		—		6		—
Paid by Qualstar to Interlink		(59)		—		(8)		—

Billed to Interlink by Qualstar		—		4		—		2
Paid by Interlink to Qualstar		—		(3)		—		(2)
Balance at March 31,	$	22	$	1	$	—	$	1