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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

13. RELATED PARTY TRANSACTIONS

 

The Company’s subsidiary, Mobilisa, Inc. leased office space from a company (“Lessor Company”) that is wholly-owned by two former directors, who were also members of management. The Company entered into a 10-year lease for the office space ending in 2017. The base annual rent for this facility was $96,010 was subject to annual increases based on the increase in the CPI index plus 1%. On February 24, 2016, the Company and the Lessor Company entered into a lease amendment agreement reducing the space under this lease that took effect on March 31, 2016 thereby closing its office facility and occupied storage space that expired on December 31, 2016. As a result of this amended agreement, the Company made a $100,000 termination payment to the Lessor in full satisfaction the Company’s remaining obligations under its original lease. For the years ended December 31, 2017 and 2016, total rent payments for this facility were $0 and $124,001 (including this termination payment), respectively.

 

On February 24, 2016, the Company entered into a stock repurchase agreement with these Executives for the repurchase of all 979,114 shares owned by the Executives of the Company’s common stock for $1,096,608. The transaction was finalized on March 4, 2016.