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. 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 modified the existing agreement and entered into a cost-sharing agreement with Interlink 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 six months ended June 30, 2018 BKF paid $750 and $3,000, respectively to the Company, as compared to $750 and $2,250 thousand for the comparable periods ended June 30, 2017. The Company incurred costs to BKF of $2,465 and $7,395 for the three and six months ended June 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 June 30, 2018 and December 31, 2017, there were no unpaid amounts owed by BKF to us. At June 30, 2018 the company’s outstanding balance due BKF was $0.

Qualstar Corporation (NASDAQ:QBAK)

The Company agreed to reimburse, or be reimbursed by, Qualstar Corporation (“Qualstar”) for our occupancy and use of a portion of their Simi Valley manufacturing location and other expenses paid by one company on behalf of the other. 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 June 30,
	2018				2017
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at March 31,	$	22	$	1	$	—	$	1

Billed to Qualstar by Interlink		81		—		1		—
Paid by Qualstar to Interlink		(93)		—		(1)		—

Billed to Interlink by Qualstar		—		4		—		3
Paid by Interlink to Qualstar		—		(4)		—		(3)
Balance at June 30,	$	10	$	1	$	—	$	1


	Six months ended June 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		145		—		7		—
Paid by Qualstar to Interlink		(152)		—		(9)		—

Billed to Interlink by Qualstar		—		8		—		5
Paid by Interlink to Qualstar		—		(7)		—		(5)
Balance at June 30,	$	10	$	1	$	—	$	1