Note 7 - Notes Payable - Related Parties

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Note Payable, Related Party [Text Block]

7.

NOTES PAYABLE – RELATED PARTIES

Notes Payable – Related parties at

March

31,

2017,

and

December

31,

2016,

are comprised of the following:

	March 31,		December 31,
	2017		2016
Notes payable to MCKEA Holdings, LLC (a)	$	—	$	250
Notes payable to JLA Realty Associates, LLC (b)		250		—
Total notes payable	$	250	$	250

(a) On December 29, 2016, the Company entered into an agreement with MCKEA Holdings, LLC (“MCKEA” ). MCKEA is the majority member of Philou Ventures, LLC, which is the Company’s controlling shareholder. Kristine L. Ault , a director and the wife of Milton C. Ault III, Executive Chairman of the Company’s Board of Directors, is the manager and owner of MCKEA, for a demand promissory note (The “MCKEA Note” ) in the amount of $250 bearing interest at the rate of 6% per annum on unpaid principal. The MCKEA Note may be prepaid, in whole or in part, without penalty, at the option of the Company and without the consent of MCKEA. As of December 31, 2016, no interest was accrued on the MCKEA Note. On March 24, 2017, the MCKEA Note was cancelled to purchase the Company’s Series B Preferred Stock pursuant to the terms of the Preferred Stock Purchase Agreement entered into on March 9, 2017 (See Note 11). Since there was no difference between the reacquisition price and the net carrying value of the cancelled debt, no gain or loss was recognized as a result of this transaction.

(b) On March 20, 2017, the Company entered into an agreement with JLA Realty Associates, LLC ( “JLA Realty” ) for a demand promissory note (the “JLA Note” ) in the amount of $250 accruing interest at the rate of 6% per annum on unpaid principal. JLA Realty owns 666,667 shares of the Company’s common stock and therefore a greater than 5% beneficial owner of the Company. The JLA Note may be prepaid, in whole or in part, without penalty, at the option of the Company and without the consent of JLA. As of March 31, 2017, no interest was accrued on the JLA Note.