XML 30 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED-PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2018
RELATED-PARTY TRANSACTIONS [Abstract]  
RELATED-PARTY TRANSACTIONS
NOTE N – RELATED-PARTY TRANSACTIONS

The Company made interest payments, aggregating approximately $108,000 in each of the three month periods ended March 31, 2018 and 2017, to MedTechnology Investments, LLC (“MedTech”) pursuant to its $4,800,000 promissory notes (“Notes”). The Notes bear interest, payable quarterly, at an annual rate of 9%, mature on May 29, 2019, may be prepaid without penalty, and are subordinated to any current or future Senior Debt as defined in the Subordinated Security Agreement. The Subordinated Security Agreement secures payment and performance of the Company’s obligations under the Notes and as a result, MedTech was granted a subordinated security interest in the Company’s assets.  The MedTech Notes were used in 2015 to partially fund the purchase of NetWolves.  $2,300,000 of the $4,800,000 provided by MedTech was provided by directors of the Company, or by family members.

David Lieberman, the Vice Chairman of the Company’s Board of Directors, is a practicing attorney in the State of New York and a senior partner at the law firm of Beckman, Lieberman & Barandes, LLP, which performs certain legal services for the Company.  Fees of approximately $85,000 were billed by the firm for each of the three month periods ended March 31, 2018 and 2017, at which dates no amounts were outstanding.

In March 2018, the Company sold its interest in the VSK joint venture to PSK for a sales price of $676,000 and executed a distributor agreement, expiring December 31, 2020, with VSK for the sale of the Company’s EECP® products in certain international markets.  The sale resulted in a gain of approximately $212,000.  Prior to the sale, the Company’s pro-rata share in VSK’s loss from operations approximated $9,000 and $45,000 for the three months ended March 31, 2018 and 2017, respectively, and is included in interest and other income, net in the accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income.