CareCloud, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Related Parties

Related Parties	12 Months Ended
Dec. 31, 2016
Related Party Transactions [Abstract]
Related Parties	12. Related PARTIES The Company recorded interest expense on the loan from the CEO of $24,969 for the year ended December 31, 2015. This loan was repaid in full on September 2, 2015. The Company had sales to a related party, a physician who is the wife of the CEO. Revenues from this customer were approximately $18,000 for each of the years ended December 31, 2016 and 2015. As of December 31, 2016 and 2015, the receivable balance due from this customer was approximately $1,600 and $1,400, respectively. The Company is a party to a nonexclusive aircraft dry lease agreement with Kashmir Air, Inc. (“KAI”), which is owned by the CEO. The Company recorded expense of $128,400 for both the years ended December 31, 2016 and 2015. As of December 31, 2016 and 2015, the Company had a liability outstanding to KAI of approximately $17,000 and $11,000, respectively, which is included in accrued liability to related party in the consolidated balance sheets. The Company leases its corporate offices in New Jersey, its temporary housing for its foreign visitors, a storage facility and its backup operations center in Bagh, Pakistan, from the CEO. The related party rent expense for the years ended December 31, 2016 and 2015 were approximately $178,000 and $175,000, respectively, and is included in direct operating costs and general and administrative expense in the condensed consolidated statements of operations. Current assets-related party on the consolidated balance sheets includes security deposits related to the leases of the Company’s corporate offices in the amount of $13,000 as of both December 31, 2016 and 2015.

Related Parties

12 Months Ended

Dec. 31, 2016

12. Related PARTIES

The Company recorded interest expense on the loan from the CEO of $24,969 for the year ended December 31, 2015. This loan was repaid in full on September 2, 2015.

The Company had sales to a related party, a physician who is the wife of the CEO. Revenues from this customer were approximately $18,000 for each of the years ended December 31, 2016 and 2015. As of December 31, 2016 and 2015, the receivable balance due from this customer was approximately $1,600 and $1,400, respectively.

The Company is a party to a nonexclusive aircraft dry lease agreement with Kashmir Air, Inc. (“KAI”), which is owned by the CEO. The Company recorded expense of $128,400 for both the years ended December 31, 2016 and 2015. As of December 31, 2016 and 2015, the Company had a liability outstanding to KAI of approximately $17,000 and $11,000, respectively, which is included in accrued liability to related party in the consolidated balance sheets.

The Company leases its corporate offices in New Jersey, its temporary housing for its foreign visitors, a storage facility and its backup operations center in Bagh, Pakistan, from the CEO. The related party rent expense for the years ended December 31, 2016 and 2015 were approximately $178,000 and $175,000, respectively, and is included in direct operating costs and general and administrative expense in the condensed consolidated statements of operations. Current assets-related party on the consolidated balance sheets includes security deposits related to the leases of the Company’s corporate offices in the amount of $13,000 as of both December 31, 2016 and 2015.