Related Party Transactions

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 5 – RELATED PARTY TRANSACTIONS

Related party balances as of September 30, 2022 and December 31, 2021 consisted of the following:

Related party payables

	September 30, 2022		December 31, 2021
	(dollars in thousands)
(a) Due to Cima Telecom Inc.	$	-		417
Total Due to related parties	$	-	$	417

(a) Composed from annual fees in the amount for the maintenance and support services in accordance with the software maintenance agreement for the second calendar year from the Effective Date and other software development services.

Related party transactions

	9 months ends at September 30, 2022		9 months   ends at September 30, 2021
	(dollars in thousands)
Carol Pepper (b)		80		-
Cima Telecom Inc. (a)	$	942		552
	$	40	$	552

(a) Composed of periodic fees in the amount of $700 thousand for the maintenance and support services in accordance with the software maintenance agreement and the a Settlement Agreement and General Release dated August 2, 2022 and the and $375 for the first half of the second calendar year from the effective date of the agreement, $242 thousand for software development services during the first nine months  of 2022 and 147$ thousand for software development services during the nine months of 2021 and  $30 thousand for the consulting services for the first quarter of 2021. Refer to note 6.

(b) Composed of consulting fee for the first half of 2022 in additional to the directorship fees.

	3 months ends at September 30, 2022		3 months   ends at September 30, 2021
	(dollars in thousands)
Cima Telecom Inc. (a)	$	383		260
	$	383	$	260

(a) Composed of fees in the amount of $383 thousand for the maintenance and support services in accordance with the software maintenance agreement and the Settlement Agreement and General Release dated August 2, 2022 and $125 for the third quarter of the second calendar year from the effective date of the agreement, 135$ thousand for software development services during the third quarter of 2021. Please refer to note 6.

Employment Agreements

On August 18, 2022, Jeffery D. Johnson signed a Separation of Employment Agreement between himself and the Company and resigned as the chief executive officer of the Company effective immediately. On August 19, 2022, the Board of Directors approved the Separation and General Release Agreement, approved the immediate acceleration of the vesting of 160,000 options previously issued to him under the Stock Option Plan that will be exercisable for a period of three years after the resignation and noted that the separation was cordial and positive. Mr. Johnson received a onetime Separation Payment of $100, and the Company will pay all costs for COBRA (health insurance) benefits through the end of calendar year 2022.

On September 30, 2022, Anthony H. Meadows resigned as chief operating officer of the “Company. The Company is negotiating a settlement agreement with Mr. Meadows and may enter into a consulting agreement with Mr. Meadows to complete certain projects that Mr. Meadows was working on prior to his resignation.