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Note 2 - Variable Interest Entity
6 Months Ended
Jun. 30, 2013
Variable Interest Entity Disclosure [Abstract]  
Variable Interest Entity Disclosure [Text Block]

2.      VARIABLE INTEREST ENTITY


Customer-Connect was formed in June 2013 to develop and commercialize the customer connect programs. Customer connect programs provide healthcare organizations the technology to engage patients through real-time identification and management of individual patient needs, preferences, risks, and experiences.  The platform ensures that organizations have access to a longitudinal view of the patient to more effectively manage patient engagement across the continuum of care. NRC has a 49% ownership interest in Customer-Connect, and is deemed the primary beneficiary. NG Customer Connect, LLC holds 25% interest, and the remaining 26% is held by Illuminate Health, LLC. NRC has agreed to lease employees to Customer-Connect. In return for a fee, Customer-Connect will service the Company’s discharge call program clients. NRC will make an initial capital contribution of $100,000, and will make additional capital contributions of up to $2.5 million on an as-needed basis as determined by the Board of Directors of Customer-Connect. Profits and losses are allocated under the hypothetical liquidation at book value approach.


NRC has a future obligation to purchase the other equity units in Customer-Connect when certain targeted events have been achieved. If at any time there is at least $12.7 million of annual recurring contract value, including the NRC contracts being serviced, and the members have approved a financial statement showing a pro forma minimum 35% EBITDA margin for revenue on a going-forward basis, then within 90 days thereafter NRC is required to purchase from the other members, and the other members shall be required to sell to NRC, all of their equity units not owned by NRC. As of June 30, 2013, the price at which NG Customer Connect, LLC and Illuminate Health LLC had the obligation to sell their equity units to NRC was $0.


Included in the Company’s condensed consolidated financial statements for the quarter ended June 30, 2013 were Customer-Connect’s net property, plant and equipment of $28,000, accrued expenses of $36,000 and net operating loss of $80,000. The net operating loss attributable to NRC for the quarter ending June 30, 2013 was $80,000.