Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

Related Party Transactions

3. RELATED PARTY TRANSACTIONS

The Company previously leased a portion of its Midland, Virginia property from its former Chairman of the Board, Rodney I. Smith, on a month-to-month basis, as additional storage space for the Company’s finished work product. The lease agreement called for monthly rents of $2. During 2021 and 2020, the Company paid rents totaling $22 and $24, respectively. In November 2021 the Company entered into an agreement pursuant to which it purchased the property for $295, which the purchase price was supported by an independent third-party valuation assessment.

The Company has an employment agreement with its former CEO and Chairman of the Board, Rodney I. Smith. Mr. Smith received his salary, pursuant to the terms of the agreement, through September 2020. While Mr. Smith has ceased providing executive officer services pursuant to such agreement, the agreement provides for an annual royalty fee of $99 payable as consideration for his assignment to the Company of all of his rights, title and interest in certain patents. Payment of the royalty continues for as long as the Company is using the inventions underlying the patents. Mr. Smith also received compensation from the Company for his services as a Director and Chairman of the Board.