Note 6 - Related Party Receivable
|9 Months Ended|
Sep. 30, 2019
|Notes to Financial Statements|
|Related Party Transactions Disclosure [Text Block]||
6.Related Party Receivable
August 10, 2016,we entered into a reimbursement agreement with a former executive officer. Pursuant to the reimbursement agreement, the former officer agreed to repay the Company, over a
six-year period, approximately
$658,000in expenses that the Company determined to have been improperly paid under the Company's prior expense reimbursement policies.
$658,000non-interest-bearing receivable was recorded net of a
$199,000discount to reflect the net present value of the future cash payments.
March 2019,in conjunction with the employee’s termination, we entered into a consulting agreement and release of claims agreement with the employee. As partial consideration for the release, we modified the reimbursement agreement to change the payment terms, extend the maturity and forgive approximately
$229,000of the outstanding receivable. At
September 30, 2019,
$229,000remains outstanding and is due in installments through
July 2025.The Company has concluded that this outstanding balance is
notrecoverable and recorded an allowance against the entire remaining balance.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef