Related Party Transaction

12 Months Ended

Dec. 31, 2013

Related Party Transaction

Related Party Transaction

16. Related Party Transaction

        In 2002, we entered into a technical services agreement for certain telemedicine technology development services for Medicomp, Inc. with Kurzweil Technologies, Inc. (KTI), a company controlled by Raymond Kurzweil, a non-independent member of our Board of Directors. Pursuant to this agreement, we agreed to pay KTI a five percent royalty on certain sales of products reasonably attributed to and dependent upon the technology developed by KTI. Upon closing of the sale of Medicomp in March 2011 (see Note 18—Sale of Medicomp, Inc.), further royalty obligations under this agreement were terminated. For the year ended December 31, 2011 we incurred royalties to KTI of $80,000.

        In 2007, we entered into another technical services agreement with KTI. Pursuant to this agreement, we paid KTI monthly consulting fees of up to $12,000 plus all necessary, reasonable and direct out-of-pocket expenses incurred in connection with the performance of related services. In addition, we agreed to pay KTI up to a five percent royalty on sales of certain products reasonably attributed to and dependent upon certain technology developed by KTI. In 2011, we amended the 2007 technical services agreement such that, effective January 2012, we reduced the monthly consulting fees to KTI to $6,000 plus all necessary, reasonable and direct out-of-pocket expenses. We terminated the 2007 technical services agreement effective December 31, 2013.

        We incurred expenses of approximately $72,000, $60,000 and $156,000, for the years ended December 31, 2013, 2012 and 2011, respectively, under these agreements. As of December 31, 2013 and 2012, we owed KTI none and none, respectively.