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11. Related Party Transactions
 12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

Since Infusion’s inception, Infusion has been substantially dependent upon funds raised by its former parent, IBI, to sustain Infusion’s operating and investing activities. The Due to Affiliates liability on the balance sheet represents the net funding advanced to Infusion from IBI with no specific repayment terms or interest. As of December 31, 2014 and December 31, 2013, the Due to Affiliates liability balance was $0 and $20,138,733, respectively.

 

Pursuant to a Contribution and Assumption Agreement entered into on March 31, 2014 between Infusion and IBI, Infusion received assets of approximately $1,014,000, assumed $11,000,000 of obligations, and recognized a capital contribution of approximately $10,181,000 after all amounts owed by Infusion to IBI were extinguished. IBI was Infusion’s Parent prior to the Infusion reverse merger and is currently ASTV’s largest shareholder with 85.2% ownership of outstanding common stock. A summary of the assets contributed and liabilities assumed follows:

 

Cash  $31,161 
Note receivable   711,220 
Interest receivable   259,584 
Property and equipment, net   6,660 
Deposits   5,392 
Total IBI assets contributed to Infusion   1,014,017 
      
Note payable   (11,000,000)
Total liabilities assumed   (11,000,000)
Net liabilities assumed by Infusion   (9,985,983)
Forgiveness of debt   20,167,184 
Contribution to capital  $10,181,201 

 

Prior to June 30, 2014, Shadron Stastney, an officer and member of our board of directors, was a member in and chief operating officer of Vicis Capital, LLC, the investment advisor to Vicis Capital Master Fund. Vicis Capital Master Fund is the holder of our 6% Senior Secured Debenture. At December 31, 2014, the outstanding balance of the debenture is $11,211,562. See note 12.

 

Ronco is indebted to CD3 Holdings, Inc. (CD3), its sole shareholder, for approximately $3,000,000 (See Note 12). The indebtedness is in the form of a promissory note. In addition, Ronco has an outstanding receivable from CD3 of approximately $489,000 and contains no payment or interest terms. The Company determined that receivable was uncollectible and, therefore, wrote the promissory note off to bad debt expense.

 

Included within the assets IBI contributed to Infusion, there is an 18% bearing note receivable due from CD3 with a past due outstanding principal amount of approximately $711,000 with accrued interest receivable of approximately $325,000. The Company determined that this note along with its accrued interest was uncollectible. Consequently, the Company recorded a loss within the other income (expense) caption of the consolidated statement of operations.