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RELATED PARTIES
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9 Months Ended | ||||
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Sep. 30, 2014
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| Related Party Transactions [Abstract] | |||||
| Related Party Transactions Disclosure [Text Block] |
In February 2013, the CEO 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; $470,089 and $735,680 was outstanding on this loan as of September 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 CEO of $36,735 and $41,907 for the nine months ended September 30, 2014 and 2013, respectively, and $11,197 and $15,703 for the three months ended September 30, 2014 and 2013, respectively. During the nine months ended September 30, 2014, the Company paid principal amount of $265,591 and accrued interest of $55,807. During the nine months ended September 30, 2014, the CEO advanced the Company $165,000 toward IPO expenses, all of which was repaid during the same period. The Company had sales to a related party, a physician who is related to the CEO. Revenue from this customer was approximately $14,583 and $12,077 for the nine months ended September 30, 2014 and 2013, respectively, and $4,523 and $3,924 for the three months ended September 30, 2014 and 2013, respectively. As of September 30, 2014 and December 31, 2013, the receivable balance due from this customer was $1,572 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 the CEO. The Company recorded expenses of $96,300 for both the nine months ended September 30, 2014 and 2013, respectively, and $32,100 for both the three months ended September 30, 2014 and 2013, respectively. As of September 30, 2014 and December 31, 2013, the Company had a liability outstanding to KAI of $91,124 and $37,789, respectively. The Company leases its corporate offices in New Jersey and its backup operations center in Bagh, Pakistan, from the CEO. The related party rent expense for the nine months ended September 30, 2014 and 2013 was $83,568 and $84,471, respectively, and $27,898 and $26,906 for the three months ended September 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 September 30, 2014 and December 31, 2013, respectively. Other assets include prepaid rent that has been paid to the CEO in the amount of $10,640 as of December 31, 2013. The CEO 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 $365,000 to the CEO during the nine months ended September 30, 2014 and 2013, respectively. The CEO repaid $1,000 and $280,209 during the nine months ended September 30, 2014 and 2013, respectively. In addition, the Company previously advanced $1,463 to a contractor in Pakistan, on behalf of the CEO. This amount is shown on the Company’s condensed consolidated cash flow statement as an advance to the CEO, and was repaid during the three months ended September 30, 2014. |