Note 11 - Related Party

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

( 11 ) Related Party

A

director of the Company also 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

$248,000,

$232,000

and

$227,000

in

2017,

2016

and

2015

respectively.

Mr. Hays, the Chief Executive Officer 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

$12,500,

$488,000

and

$440,000

in

2017,

2016

and

2015,

respectively.

Mr. Hays

personally incurred approximately

$538,000

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

13

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

2017.

These fees and expenses were attributable to the evaluation of alternatives and the sourcing and negotiating of financing for the alternatives, all of which would have been borne directly by the Company if they had been advanced by Mr. Hays. Mr. Hays advanced these funds personally in order to maintain the confidentiality of the evaluation of such alternatives and allow the management team to maintain its focus on the Company’s business and operations.

During

2017,

the Company acquired a cost method investment in convertible preferred stock of PX

(see Note

2

). Also in

2017,

the Company paid

$250,000

to acquire certain perpetual content licenses from PX for content the Company includes in certain of its subscription services. The Company also has an agreement with PX which commenced in

2016

under which the Company acts as a reseller of PX services and receives a portion of the revenues. The total revenue earned from the PX reseller agreement in the years ended

December 31, 2017

and

2016

was

$633,000

and

$28,000,

respectively.