RELATED PARTIES |
9 Months Ended | ||||
|---|---|---|---|---|---|
Sep. 30, 2015 | |||||
| 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 at that time. On September 2, 2015, the outstanding loan to the CEO together with accrued interest aggregating $905,058 was paid in full from the Opus Bank loan proceeds. The outstanding loan balance to the CEO was $470,089 as of December 31, 2014. The loan had an annual interest rate of 7.0%. The Company recorded interest expense on the loan from the CEO of $24,969 and $36,735 for nine months ended September 30, 2015 and 2014, respectively, and $8,651 and $11,197 for the three months ended September 30, 2015 and 2014, respectively. Amounts owed for accrued interest are included in accrued liability to related party in the condensed consolidated balance sheet at December 31, 2014. During the nine months ended September 30, 2015, the Company paid accrued interest of $69,998 to the CEO. The Company had sales to a related party, a physician who is related to the CEO. Revenues from this customer were approximately $12,778 and $14,583 for the nine months ended September 30, 2015 and 2014, respectively, and $4,148 and $4,523 for the three months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and December 31, 2014, the receivable balance due from this customer was $1,073 and $1,128, respectively. During April 2015, the Company began initial testing of a new service called Same Day Funding with the physician related to the CEO. The Audit Committee of the Board of Directors approved advancing funds of no more than $20,000 through the end of 2015. The Company ceased testing of Same Day Funding in September 2015 and recovered all of the funds that were advanced. 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 $96,300 for both the nine months ended September 30, 2015 and 2014 and $32,100 for both the three months ended September 30, 2015 and 2014. As of September 30, 2015 and December 31, 2014, the Company had a liability outstanding to KAI of $39,630 and $108,902, respectively which is included in accrued liability to related party in the condensed consolidated balance sheets. The Company leases its corporate offices in New Jersey, its temporary housing for its foreign visitors and its backup operations center in Bagh, Pakistan, from the CEO. The related party rent expense for the nine months ended September 30, 2015 and 2014 was $131,130 and $83,568, respectively, and $43,360 and $27,898 for the three months ended September 30, 2015 and 2014, 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 both September 30, 2015 and December 31, 2014. Other assets include prepaid rent that has been paid to the CEO in the amounts of $11,334 and $11,084 as of September 30, 2015 and December 31, 2014, respectively. The Company advanced $1,000 to the CEO during the three months ended March 31, 2014, which was repaid during the same period. The CEO of the Company had guaranteed the Company’s former line of credit with TD Bank. |