Note 8 - Related Party

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

8. RELATED PARTY

A

 director of the Company serves as an officer of Ameritas Life Insurance Corp. (“Ameritas”). In connection with the Company’s regular assessment of its insurance-based associate benefits, which is conducted by an independent insurance broker, and the costs associated therewith, the Company purchases dental and vision insurance for certain of its associates from Ameritas. The total value of these purchases was

$63,000

and

$59,000

for the

three

-month periods ended

September 30, 2017

and

2016,

respectively, and

$183,000

and

$174,000

for the

nine

-month periods ended

September 30, 2017

and

2016,

respectively.

Mr. Hays, the Chief Executive Officer, majority shareholder and director of the Company, is an owner of

14%

of the equity interest of Nebraska Global Investment Company LLC (“Nebraska Global”).

  The Company, directly or indirectly through its former subsidiary Customer-Connect LLC, purchased certain services from Nebraska Global, primarily consisting of software development services.  The total value of these purchases were

$68,000

and

$488,000

in the

three

-month and

nine

-month periods ended

September 30, 2016,

respectively. There were

no

purchases from Nebraska Global in

2017.

Mr. Hays incurred approximately

$538,000

of fees and expenses in connection with exploring strategic alternatives for the Company, including the proposed recapitalization (see Note

9

), for which the Company has reimbursed Mr. Hays in the

three

and

nine

-month periods ended

September 30, 2017.

During the

three

months ended

September 30, 2017,

t

he Company acquired a cost method investment in convertible preferred stock of PX. Prior to the investment, the Company entered into an agreement with PX, under which the Company acts as a reseller of PX services (the “PX reseller agreement”). Additionally, the Company acquired content licenses from PX for content that the Company includes in certain of its subscription services. The total revenue earned from the PX reseller agreement in the

three

and

nine

month periods ended

September 30, 2017

was

$159,000

and

$454,000,

respectively. There was

no

revenue earned during the

three

and

nine

month periods ended

September 30, 2016.

The total amount paid for licensed content from PX in the

three

and

nine

-month periods ended

September 30, 2017

was

$250,000.

There were

no

such purchases in

2016.