Related Party Transactions

12 Months Ended

Dec. 31, 2016

12. Related Party Transactions

Stephen M. Merrick, President of the Company, is of counsel to a law firm from which the Company received legal services during the year. Mr. Merrick is both a director and a shareholder of the Company. Legal fees paid to this firm were $188,000 and $149,000 for the years ended December 31, 2016 and 2015, respectively.

John H. Schwan, Chief Executive Officer of the Company, is the brother of Gary Schwan, one of the owners of Schwan Incorporated, which provides building maintenance and remodeling services to the Company. The Company made payments to Schwan Incorporated of approximately $15,000 and $4,000 during the years ended December 31, 2016 and 2015, respectively.

During the period from January 2003 to the present, John H. Schwan, Chief Executive Officer of the Company, has made loans to the Company which have outstanding balances, for the Company of $1,416,000 and $1,323,000 as of December 31, 2016 and 2015, respectively. During 2016 and 2015, interest expense to this individual on these outstanding loans was $93,000 and $87,000, respectively (see Notes 8 and 9).

During 2010, Schwan Leasing and Merrick Company, owned by John H. Schwan and Stephen M. Merrick, provided financing for the acquisition and construction of latex balloon production and related equipment (see Note 13).

Other Assets include amounts due to the Company from its employees. As of December 31, 2016 and 2015, the balance outstanding on these amounts was $47,000 and $46,000, respectively.

Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of December 31, 2016 and 2015 include loans by shareholders to Flexo Universal totaling $47,000 and $65,000, respectively, as well as a loan to CTI Europe totaling $27,000 and $27,000, respectively.

The transactions described in Note 13.