Related Party Transactions

9 Months Ended

Sep. 30, 2016

8. Related Party Transactions

The Company entered into an Investment Banking Advisory Services agreement in November 2007 with MDB Capital Group LLC (“MDB”), and the parties extended this agreement indefinitely in April 2009. The agreement may be terminated by either party upon 30-days written notice.

The Company has a securities investment account with MDB, consisting of (a) available-for-sale investments totaling $1,097,470, that include short-term federal securities of $4,951, and certificates of deposit, municipal securities and corporate debt securities totaling $1,092,519 at September 30, 2016 (unaudited), and (b) available-for-sale investments totaling $1,776,185, that include short-term federal securities of $4,885, certificates of deposit, municipal securities and corporate debt securities totaling $1,771,300 at December 31, 2015.

Mr. Christopher Marlett, the Chief Executive Officer and director of the Company, is also the Chief Executive Officer of MDB. Mr. Gary Schuman, who is the Chief Financial Officer of the Company, is also the Chief Financial Officer and Chief Compliance Officer of MDB. The Company compensates for Mr. Schuman’s services in the amount of $3,000 per month, totaling $27,000 for the nine months ended September 30, 2016 and 2015 (unaudited). Mr. Robert Levande, who is an officer and director of the Company, is also a senior managing director of MDB. In addition to shares of common stock (as discussed in Note 6), Mr. Levande was compensated $9,375 for his services as director for the nine months ended September 30, 2016 (unaudited).

MDB has guaranteed $125,000 of the principle amount due on the Term Note from theMaven Network, Inc. described in Note 4 above. This guarantee will terminate upon the completion of the acquisition of theMaven Network, Inc. which is described in Note 1 above and Note 10 below.