Related Parties

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Parties

NOTE 18 — RELATED PARTIES

Building lease

The Company entered into an above-market property lease with the two former stockholders of CXR Larus in 2004.  The lease term was for 7 years which expired on June 30, 2011. The lease was then renewed for a one-year term under market conditions at $11,500 per month inclusive of service costs. Since that date, at the instigation of the Company, the lease has been renewed on a monthly basis at a fair market rate of $2,000 per month. Lease payments paid to the related parties during 2012 and 2011 totalled $81,000 and $238,000, respectively. 

Notes payable to Former Shareholders of ACC

Promissory notes were issued in May 2008 in connection with the acquisition of ACC, a company acquired and subsequently sold by the Company. Since issuing the notes there have been several amendments to the terms, most recently, effective November 1, 2012 (the “Amended Subordinated Contingent Notes”). One of the note holders owns shares in the Company and, therefore, is deemed a related party and holds a majority of the balance of the Notes.  The total balance of the Notes at December 31, 2012 was $2.9 million.  The Amended Subordinated Contingent Notes bear interest at the prime rate, as reported in The Wall Street Journal, plus 4% and mature on December 15, 2014 (“2014 Maturity Date”).  Interest is payable quarterly through the 2014 Maturity Date.  Payments of principal commenced in January 2013.

Other related parties

There are no guarantees by, fees paid to, or loans to or from officers or directors of the Company.