Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Related Party Receivable

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Note 6 - Related Party Receivable
3 Months Ended
Mar. 31, 2019
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. 
 
In
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
50%
of the outstanding receivable. At
March 31, 2019,
$229,000
remains outstanding and is due in payments through
July 2025.
The Company has concluded that this outstanding balance is
not
recoverable and recorded an allowance against the entire remaining balance.