Related Party Transactions

9 Months Ended

Sep. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 6 – Related Party Transactions

As of September 30, 2011 and December 31, 2010, the Chief Executive Officer was indebted to the Company in the amount of $131 and $136, respectively, for which no interest has been charged.  This indebtedness arose from a series of cash advances, the latest of which was advanced in February 2002 and is included in other assets at September 30, 2011 and December 31, 2010.  Payments on this indebtedness ceased in November 2008 when the Chief Executive Officer filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code and the indebtedness became subject to the automatic stay provisions of the United States Bankruptcy Code. On July 29, 2009 a plan of reorganization in connection with the Chief Executive Officer’s bankruptcy case was confirmed by the United States Bankruptcy Court for the District of New Jersey.

Under the confirmed plan of reorganization, the Chief Executive Officer will be obligated to pay a pro-rata share, with all other unsecured pre-petition obligations, of the excess, if any, of his disposable income after the payment of all administrative claims and other expenses.  The actual amount that the Company may expect to receive pursuant to the confirmed plan and the date on which required payments would commence are not presently determinable.  Since May 2010, however, the Chief Executive Officer has made elective payments to the Company to reduce the indebtedness.  Such elective payments aggregated $5 for the nine months ended September 30, 2011.

In December 2007, the Company entered into an agreement to provide manufacturing, research and development and product support to Buffalo City Center Leasing, LLC (“Buffalo City ”) for an electronic on-board recorder that Buffalo City was producing for Turnpike Global Technologies, LLC (which was purchased in 2010 by, and operates as a division of, XATA Corporation).  The Company received $946 and $852 in revenue from Buffalo City in the three months ended September 30, 2011 and 2010, respectively and $2,503 and $1,648 in the nine months ended September 30, 2011 and 2010, respectively.  In addition, the Company’s accounts receivable included $1,162 (28%) and $767 (21%) due from Buffalo City at September 30, 2011 and December 31, 2010, respectively.  The agreement with Buffalo City expired by its terms in the first quarter of 2011, however, Buffalo City continued purchasing such product from the Company through July, 2011 on the same terms and conditions.  In the second quarter of 2011, the Company entered into a new agreement directly with XATA Corporation, which sets forth the terms and conditions of purchases by XATA of the next generation of the product.  The XATA agreement also permits XATA to obtain financing from approved third party lenders to finance its purchases from the Company.  Buffalo City has been approved by the Company to act as such an approved third party lender to XATA.  As such, the Company is presently permitting Buffalo City (in this capacity) to purchase products from the Company on open account with a credit limit that is presently set at $1,000, the terms for payment of which are presently net 110 days after shipment.  Under the terms of the XATA contract, the obligations of Buffalo City are guaranteed by XATA.  A director of the Company is also the managing member and a vice president of Buffalo City and may be deemed to control the entity which owns fifty percent (50%) of the membership interests of Buffalo City.