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Note 13 - Related Party Transactions
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12 Months Ended |
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Dec. 31, 2011
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| Related Party Transactions Disclosure [Text Block] |
13. Related
Party Transactions
Pursuant
to the terms of the Investment Agreement, on September 2,
2011, the Company paid JPE $1,000,000 as reimbursement for
certain expenses incurred by JPE in connection with the
transactions contemplated by the Investment Agreement, which
reduced the net proceeds received for the Series A Preferred
Stock and the Warrants. With the approval of the audit
committee of the Company’s board of directors, the
Company also agreed to pay an incremental $261,000 of
expenses incurred by JPE in connection with the transactions
contemplated by the Investment Agreement. In addition, with
the approval of the Company’s board of directors, the
Company agreed to pay JPE $297,000 as reimbursement for
certain executive search firm and other expenses incurred by
JPE on behalf of the Company.
In
March 2010, the Company issued a promissory note to an
employee for $150,000. The note accrues interest at
5.5%
per annum, and is collateralized by a mortgage on real
property. The note has no stated maturity;
however, the note and accrued interest are payable in full to
the Company upon termination of the employee’s
employment. The note and accrued interest will be
paid by the employee in the form of performance bonuses in
the future. As of December 30, 2011, the note had
an outstanding balance of $143,000, of which approximately
$15,000 was classified as a current note receivable based on
the expected bonus to be paid to the employee in 2012, and
approximately $128,000 was classified as a long-term note
receivable.
In
December 2010, an owner of one of CGL’s independently
owned stations sold his interest in such station and became
employed by CGL. In connection with his prior ownership and
operation of his CGL station, this employee was the obligor
on a promissory note in favor of CGL in an aggregate
principal amount of $128,000. The note accrues interest at
the prime rate, as in effect from time to time, and is
uncollateralized. The note matures on August 31, 2012
and requires bi-weekly payments of $2,600. As of
December 31, 2011, the note had an outstanding balance of
$56,000, which has been classified as a current note
receivable.
The
above transactions are not necessarily indicative of amounts,
terms and conditions that the Company may have received in
transactions with unrelated third parties.
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