3. Related Party Transactions

BKF occupies space pursuant to a license agreement, dated May 1, 2014 between BKF and Qualstar Corporation. BKF pays a license fee to Qualstar of $14,400 per annum, or $1,200 per month, for use of the space. Steven N. Bronson, BKF’s Chairman, CEO and majority shareholder, is also the CEO and President of Qualstar. The Company licensed a portion of its office to three companies affiliated with Steven N. Bronson. Specifically, Bronson & Co. LLC paid a license fee of $500 per month and 4net Software, Inc. and Ridgefield Acquisition Corp. each paid a license fee of $100 per month.

Prior to May 1, 2014, the Company has licensed a portion of its former office in Florida to three companies affiliated with Steven N. Bronson who is BKF's Chairman and President. Specifically, BKF licensed office space and use of facilities to Catalyst Financial, LLC n/k/a Bronson & Co. LLC, 4net Software, Inc. and Ridgefield Acquisition Corp. (collectively the "Licensees"). Specifically, Catalyst Financial paid a license fee of $2,000 per month and 4net Software, Inc. and Ridgefield Acquisition Corp. paid a license fee of $100 per month.