Note 16 - Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions Disclosure [Text Block]

16.     Related Party Transactions

Steel Partners beneficially owned approximately 51.5% of the Company’s outstanding common stock as of March 31, 2013. Jack L. Howard, John J. Quicke, and Warren G. Lichtenstein are directors of the Company and each such person is deemed to be an affiliate of Steel Partners under the rules of the Securities Exchange Act of 1934, as amended. Each of the three directors is compensated with cash compensation and equity awards or equity-based awards in amounts that are consistent with the Company’s Non-employee Director Compensation Policy. In addition, Mr. Quicke currently serves as the CEO of Steel Energy and Mr. Howard is Vice Chairman of the Company.

Effective October 1, 2011, the Company contracted with SP Corporate Services LLC (“SP Corporate”), a Steel Partners affiliate, to provide financial management and administrative services, including the services of a CFO. Under the terms of the services agreement, SP Corporate was receiving $35,000 monthly for the provision of such services. Effective August 1, 2012, the agreement was amended and restated whereby SP Corporate provides expanded services including the positions of a principal executive officer and CFO, responsible for financing, regulatory reporting, and other administrative and operational functions. SP Corporate receives $300,000 per month for these expanded services. This services agreement was approved by a committee of the Company’s independent directors. In addition, the Company reimburses SP Corporate and other Steel Partners affiliates, for certain expenses incurred on the Company’s behalf. During the three-month periods ended March 31, 2013 and 2012, the Company expensed $1.0 million and $0.1 million, respectively, to SP Corporate. As of March 31, 2013, the Company owed SP Corporate $0.3 million.

The Company holds $15.1 million of short-term deposits at WebBank, an affiliate of Steel Partners, and recorded interest income of $24,690 for the three-month period ended March 31, 2013. There was no interest income from WebBank during the three-month period ended March 31, 2012.