Note 11 - Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions Disclosure [Text Block]

NOTE 11.   RELATED PARTY TRANSACTIONS

On August 11, 2011, the Company entered into a LOC agreement with Mark Plush, Chief Financial Officer of the Company, for $250 thousand.  For a full description of the terms of these LOC’s, reference is made to Note 10, Debt, of the Company’s 2012 Annual Report on Form 10-K.

On December 12, 2012, the Board of Directors of the Company appointed James Tu to serve as its non-executive Chairman.  Mr. Tu is the Founder, Chief Executive Officer and Chief Investment Officer of 5 Elements Global Advisors, an investment advisory and management company focusing on investing in clean energy companies with breakthrough, commercialized technologies and near-term profitability potential.  He is also Co-Founder of Communal International Ltd. “(Communal”), a British Virgin Islands Company dedicated to assisting clean energy solutions companies maximize their technology and product potential and gain access to global marketing, distribution licensing, manufacturing and financing resources.

On February 27, 2012, the Company entered into an Asian Business Development/Collaboration Agreement with Communal.  The agreement had a 60 month term, under which the Company was committed to pay $523 thousand to Communal, all of which was paid by December 31, 2012.  Effective on January 1, 2013, the Asian Business Development/ Collaboration Agreement with Communal was amended to reflect the extension of the terms of the agreement for an additional 12 months, and the addition of certain services and countries in the territory covered by the agreement.  In connection with the amended and restated agreement, the Company agreed to pay an additional $425 thousand through December 2013.  After December 31, 2013, the Company may terminate the agreement upon 30 days written notice.  The Company paid $75 thousand during the first quarter of 2013, and recorded expense of $56 thousand under this agreement.  Additionally, during the term of the agreement, the Company will pay Communal a five percent (5%) commission on the Company’s net sales which occur within the Territory, as defined by the agreement.  The Company has incurred no commissions due under this agreement through March 31, 2013.