RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2017

(13) RELATED PARTY TRANSACTIONS

The Company employs Mr. Martin Sandgaard and Mr. Joachim Sandgaard, both sons of Thomas Sandgaard. Compensation was $43 and $30 for the three months ended March 31, 2017 and 2016, respectively. To meet Mr. Sandgaard’s obligation to his former wife under a settlement agreement, the Company, during the fourth quarter of 2015, entered into 3 year employment arrangement totaling $100,000 per year with Mr. Joachim Sandgaard.

Related party payables primarily consist of advances made to the Company and inventory purchases made on behalf of the Company. Accrued liabilities as of March 31, 2017 and December 31, 2016 include a net payable to Thomas Sandgaard of $23 and $75 respectively, and a net payable to an employee of $109 and $112 respectively. During the three months ending March 31, 2017 the company made a repayment to Thomas Sandgaard and an employee of $52 and $3 respectively.