RELATED-PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 2020

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

14. RELATED-PARTY TRANSACTIONS

In April 2017, the Company renewed a consulting agreement with a shareholder, incurring $76 and $75 in fees and reimbursed travel costs in fiscal 2020 and fiscal 2019, respectively. Additionally, the Company has a consulting agreement with LS Associates by which we paid consulting fees of $64 and $156 in fiscal 2020 and fiscal 2019, respectively. LS Associates is owned in part by our CEO, Robert W. Leasure Jr. The Company received consulting services form LS Associates prior to Mr. Leasure being elected as CEO and continues to use services of the consulting firm on an as needed basis. The Company leases space from SWL Properties, LLC.  SWL Properties is owned by three employees of the company, two of which are officers.  The lease term is seven years, with the possibility of extension for two successive terms of seven years each.  The lease also includes an option to purchase the building during the first five years of the lease at fair market value.  The lease is reflected as a financing lease on the balance sheet.  Lease expense incurred was $390 in each of the fiscal years 2020 and 2019.

The Company has an unsecured promissory note in the initial principal amount of $800 made by PCRS Purchaser, who is an affiliate of the Company. See description of promissory note in Note 7. In addition, the affiliate leases space to the Company. The initial term of the lease is five years with the possibility of extension for two successive terms of five years each. The lease is reflected as an operating lease on the balance sheet. Lease expense incurred was $85 in fiscal 2020.