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RELATED PARTIES
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6 Months Ended | ||||
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Jun. 30, 2014
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| Related Party Transactions [Abstract] | |||||
| Related Party Transactions Disclosure [Text Block] |
In February 2013, the majority shareholder advanced a loan of $1,000,000 to the Company, of which a portion was used to repay the outstanding balance on the revolving credit line with TD Bank; $735,680 was outstanding on this loan as of June 30, 2014 and December 31, 2013, respectively. The loan bears an annual interest rate of 7.0%. The total principal and outstanding interest are due upon maturity of the loan on July 5, 2015. The Company recorded interest expense on the loan from the majority shareholder of $25,537 and $26,205 for six months ended June 30, 2014 and 2013, respectively, and $12,839 and $15,849 for the three months ended June 30, 2014 and 2013, respectively. During the six months ended June 30, 2014, the Company paid the accrued interest of $55,807. During the three months ended June 30, 2014, the majority shareholder advanced the Company $165,000 toward IPO expenses, of which $115,000 was outstanding as of June 30, 2014. The Company had sales to a related party, a physician who is related to an officer and the majority shareholder. Revenues from this customer were approximately $10,060 and $8,153 for the six months ended June 30, 2014 and 2013, respectively, and $5,324 and $3,977 for the three months ended June 30, 2014 and 2013 respectively. As of June 30, 2014 and December 31, 2013, the receivable balance due from this customer was $1,639 and $1,746, respectively. The Company is a party to a nonexclusive aircraft dry lease agreement with Kashmir Air, Inc. (“KAI”), which is owned by an officer and the majority shareholder. The Company recorded expenses of $64,200 for both the six months ended June 30, 2014 and 2013, respectively, and $32,100 for both the three months ended June 30, 2014 and 2013, respectively. As of June 30, 2014 and December 31, 2013, the Company had a liability outstanding to KAI of $73,346 and $37,789, respectively. The Company leases its corporate offices in New Jersey and its backup operations center in Bagh, Pakistan, from an officer and the majority shareholder. The related party rent expense for the six months ended June 30, 2014 and 2013 was $85,007 and $78,272, respectively, and $42,787 and $39,102 for the three months ended June 30, 2014 and 2013, 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 condensed consolidated balance sheets includes security deposits related to the leases of the Company’s corporate offices in the amount of $13,200 as of June 30, 2014 and December 31, 2013, respectively. Other assets include prepaid rent that has been paid to the majority shareholder in the amount of $10,640 as of December 31, 2013. The majority shareholder of the Company guaranteed the Company’s existing line of credit with the TD Bank and the loan with Santander Bank (see Note 7). The Company advanced $1,000 and $205,000 to the majority shareholder during the six months ended June 30, 2014 and 2013, respectively. The majority shareholder repaid $1,000 and $200,000 during the six months ended June 30, 2014 and 2013, respectively. In addition, during the three months ended June 30, 2014, the Company advanced $1,522 to a contractor in Pakistan, on behalf of the majority shareholder. This amount is shown on the Company’s cash flow statement as an advance to majority shareholder, and was repaid subsequent to June 30, 2014. |