NOTE 7‑RELATED PARTY TRANSACTIONS

BKF Capital Group (OTCM:BKFG)

Steven N. Bronson, our Chairman of the Board, President and Chief Executive Officer, simultaneously serves as an officer of Qualstar Corporation (OTCMKTS: QBAK) and BKF Capital Group, Inc. (OTCMKTS: BKFG). Mr. Bronson serves as President and Chief Executive Officer of Qualstar Corporation ("Qualstar") and as the Chairman of the Board and Chief Executive Officer for BKF Capital Group, Inc. (“BKF Capital”). We have entered into the following cost sharing arrangements with Qualstar and BKF Capital.

Irvine, CA Facility: We entered into a sublease agreement for our corporate headquarters in Irvine, CA in June 2020. We have an oral agreement with Qualstar and BKF Capital to allow each use of a portion of the premises, and have agreed to split all rent and lease-related costs as follows: 47.5% for Interlink, 47.5% for Qualstar, and 5% for BKF Capital. For the three and nine months ended September 30, 2020, BKF Capital paid the Company $612.

We entered into an agreement, dated March 1, 2017 with BKF Capital. Pursuant to the agreement, BKF Capital occupies and uses one furnished office, telephone and other services, located at our corporate offices, for a fee of $1,000 per month. The agreement was amended effective February 1, 2017, reducing the fee to $250 per month. In addition, we will occasionally pay administrative expenses on behalf of BKF Capital, and BKF Capital will reimburse the Company. On March 1, 2018, BFK Capital leased executive office space in Charleston, SC. Interlink used a portion of this office space for a proportionate fee. BKF Capital still utilized a portion of the Interlink offices in California for the $250 per month fee. Effective March 1, 2018, we modified the existing agreement and entered into a cost-sharing agreement with BKF Capital 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.

In February 2019, BKF Capital chose not to renew the lease for executive office space in Charleston, SC. BKF Capital still paid for office space located at Interlink’s corporate offices in Westlake Village, CA, for a fee of $250 per month until June 2019, when Interlink moved its corporate headquarters to Camarillo, CA in a facility shared with Qualstar. Beginning in June 2019 and going forward, BKF Capital pays Qualstar directly for the $250 per month fee.

For the three and nine months ended September 30, 2020, BKF Capital paid $3,805 and $3,805, respectively to the Company as compared to $0 and $1,500 for the comparable periods ended September 30, 2019. At September 30, 2020 and December 31, 2019, there were no amounts owed between the companies.

Qualstar Corporation (OTCM:QBAK)

The Company agreed to reimburse, or be reimbursed by, Qualstar for our occupation and use of a portion of their Camarillo, CA manufacturing location and other expenses paid by one company on behalf of the other. In addition, the Company and Qualstar have entered into shared services agreements for marketing, executive and finance support services. 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 September 30,
	2020				2019
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at June 30,	$	48	$	7	$	1	$	1

Billed to Qualstar by Interlink		127		—		43		—
Paid by Qualstar to Interlink		(162)		—		(31)		—

Billed to Interlink by Qualstar		—		18		—		15
Paid by Interlink to Qualstar		—		(20)		—		(9)
Balance at September 30,	$	13	$	5	$	13	$	7


	Nine months ended September 30,
	2020				2019
	Due from Qualstar		Due to Qualstar		Due from Qualstar		Due to Qualstar
	(in thousands)
Balance at January 1,	$	24	$	12	$	3	$	2

Billed to Qualstar by Interlink		381		—		157		—
Paid by Qualstar to Interlink		(392)		—		(147)		—

Billed to Interlink by Qualstar		—		71		—		25
Paid by Interlink to Qualstar		—		(78)		—		(20)
Balance at September 30,	$	13	$	5	$	13	$	7