Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Related Party Receivable

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Note 6 - Related Party Receivable
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
Note
6.
Related Party Receivable
 
On
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
$658,000
in expenses that the Company determined to have been improperly paid under the Company's prior expense reimbursement policies. In addition to this reimbursement agreement, the Company has implemented and is continuing to implement enhanced policies and procedures for travel expense reimbursements and disbursements.
 
The
$658,000
non-interest-bearing receivable was recorded net of a
$199,000
discount to reflect the net present value of the future cash payments.  The discount is being amortized through interest income using the effective interest method.  The principal amount of
$458,000
remains outstanding at
September 30, 2018
and is payable in
$100,000
annual installments with a final payment due
July 2022.