Note 11 - Related Party Transactions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

11

- Related Party Transactions

John H. Schwan, who resigned as Chairman of the Board on

June 1, 2020,

is the brother of Gary Schwan,

one

of the owners of Schwan Incorporated, which provides building maintenance services to the Company. The Company made payments to Schwan Incorporated of approximately

$31,000

and

none

during the

three

months ended

March 31, 2021

and

2020,

respectively. As of

March 31, 2021

the payable balance amounted to

nil.

 Jana M. Schwan, Chief Operating Officer of the Company, is the daughter of John H. Schwan. 

During the period from

January 2003

to the present, John H. Schwan has made loans to the Company which had outstanding balances of

$1,140,709

and

$1,123,769

as of

March 31, 2021

and

December 31, 2020,

respectively. 

No

payments were made to Mr. Schwan since

2019.

Interest expense related to this loan amounted to

$17,000

and

$15,000

for the

three

months end

March 31, 2021

and

2020,

respectively.

Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of

March 31, 2021

and

2020

include loans by shareholders to Flexo Universal totaling

nil

and

$9,000,

respectively.

On

July 1, 2019,

the Company deconsolidated Clever, and as result the Company recorded a note receivable of

$1.3

million. One of owners of Clever is John Schwan from above. In

2020,

the Company had reserved

$1,277,000

of this receivable and as a result the balance as of

December 31, 2020

and

March 31, 2021

amounted to

$100,000

.

In

January 2021

we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.  We issued

170,000

shares of Series C Preferred for an aggregate purchase price of

$1,500,000.

  Additional details regarding the transaction are discussed in Note

5.