Note 17 - Related Party Transactions

6 Months Ended

Dec. 31, 2011

Related Party Transactions Disclosure [Text Block]

NOTE 17:                      RELATED PARTY TRANSACTIONS

Information related to the Company’s related party transactions is as follows:

Transactions with ICP and ICP Holdings

The Company has entered into various agreements with ICP and ICP Holdings including a Contribution Agreement, an LLC Interest Purchase Agreement, a Limited Liability Company Agreement and a Marketing Agreement. These agreements are further described in Note 3. Investment in Joint Ventures and Note 22. Subsequent Events.

As of December 31, 2011, June 30, 2011 and June 30, 2010, the Company recorded $6,167,  $6,166 and $4,951, respectively, of amounts due to ICP that is included in the Accounts payable to affiliate, net caption on the accompanying Consolidated Balance Sheets and purchased approximately $40,159, $57,482 and $17,342 of product from ICP during the six month transition period ended December 31, 2011 and the fiscal years ended June 30, 2011 and 2010, respectively, which is included in the Cost of sales caption of the Consolidated Statements of Operations.

Randy M. Schrick serves as the Vice President of Engineering of the Company and served as President of ICP from November 2009 to December 2011.

Long term debt

At June 30, 2009, the Company had $2,000 outstanding on a 7.00% Secured Promissory Note due March 2011 (as amended).  The note was due to the Cloud L. Cray, Jr. Trust (“Cray Trust”).  Mr. Cray, who is settlor and trustee of the Cray Trust, is a director of the Company and its principal stockholder, with an approximate 20 percent beneficial ownership interest in the common stock of the Company.  At the time the loan to the Company was made, Mr. Cray was also a trustee of the voting trust which owned a controlling interest in the Company’s preferred stock.  On December 21, 2009, the Company paid $2,101 to the Cray Trust in full payment of all amounts due under the note and obtained release of remaining liens.

On July 20, 2009, Union State Bank – Bank of Atchison (“Bank of Atchison”), which previously had loaned the Company $1,500, agreed to loan the Company an additional $2,000.  The Company’s President and Chief Executive Officer, Mr. Newkirk, is a director of the Bank.  At December 31, 2011, June 30, 2011 and June 30, 2010, the Company had $1,374, $1,516 and $1,783 outstanding, respectively on a 6.47% Secured Promissory Noted, due monthly to July 2016.

On April 15, 2009, the Company borrowed $2,800 from Exchange National Bank & Trust Co. of Atchison.  At June 30, 2009, the Company had $2,768 outstanding on 7% Secured Promissory Note due July 2010 (as amended).  Ladd Seaberg, the Company’s former Chairman of the Board, son-in-law of Mr. Cloud L. Cray, Jr., spouse to a member of the Board of Directors and a voting trustee of the voting trust, is a director on the Exchange National Bank & Trust Co. of Atchison’s board.  On November 20, 2009, the Company repaid the remaining balance of $2,811 from proceeds of the sale of a 50% interest in ICP in full satisfaction of its obligations under this loan and obtained release of the related liens.

Consulting contract

The Company had a consulting contract with Ladd Seaberg, its former Chairman of the Board, who is also the son-in-law of Mr. Cloud L. Cray, Jr., spouse of a member of the Board of Directors and a voting trustee of the voting trust.  Under the contract, $250 was payable annually in exchange for consulting services.  The contract expired June 14, 2011.