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. Effective September 1, 2018 the square footage dedicated to Interlink was decreased and the fee was lowered to $1,255 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 entered into a cost-sharing agreement with BKF 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 and nine months ended September 30, 2018 BKF paid $750 and $3,000, respectively to the Company, as compared to $750 and $3,000 thousand for the comparable periods ended September 30, 2017. The Company incurred costs to BKF of $6,468 and $16,328 for the three and nine months ended September 30, 2018, respectively. There were no similar payments made by the Company to BKF in 2017. 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, 2018 and December 31, 2017, there were no unpaid amounts outstanding between the parties.

Qualstar Corporation (NASDAQ:QBAK)

The Company utilizes a portion of a Simi Valley, California manufacturing facility leased by Qualstar Corporation (“Qualstar”) for our assembly and prototyping operations. In addition, Qualstar or Interlink will occasionally pay administrative expenses on behalf of the other party, and seek reimbursement at cost. 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,
	2018				2017
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at September 30,	$	10	$	1	$	—	$	1

Billed to Qualstar by Interlink		36		—		1		—
Paid by Qualstar to Interlink		(46)		—		(1)		—

Billed to Interlink by Qualstar		—		4		—		3
Paid by Interlink to Qualstar		—		(4)		—		(3)
Balance at September 30,	$	—	$	1	$	—	$	1


	Nine months ended September 30,
	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		181		—		8		—
Paid by Qualstar to Interlink		(198)		—		(10)		—

Billed to Interlink by Qualstar		—		11		—		8
Paid by Interlink to Qualstar		—		(10)		—		(8)
Balance at September 30,	$	—	$	1	$	—	$	1