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Related Party Transactions
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6 Months Ended | ||
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Jun. 30, 2011
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| Related Party Transactions | |||
| Related Party Transactions |
The Company recorded $175 thousand and $364 thousand in stock based compensation expense during the three and six months ended June 30, 2011, respectively, related to shares granted to the board of directors and officers. The Company recorded $686 thousand and $727 thousand in stock based compensation expense during the three and six months ended June 30, 2010, respectively, related to shares granted to the board of directors and officers. As described in Note 3 to these consolidated financial statements, in accordance with the terms of the Stock Purchase Agreement with First Biomedical, the Company entered into a subordinated promissory note with the former majority shareholder of First Biomedical (the Seller) in the amount of $750 thousand. In accordance with the note, the Company will pay the Seller in equal installments over 24 months, which includes annual interest of 5%. As of June 30, 2011 the outstanding principal due on the note was $384 thousand. The Seller is a current employee of the Company, and is subject to an employment agreement. Also, the Seller owns Jan-Mar LLC and is the principal owner of the CW Investment Group LLC. In accordance with the Stock Purchase Agreement, the Company entered into operating lease agreements with Jan-Mar LLC and the CW Investment Group LLC, each of which owns one of the two office buildings utilized by First Biomedical in Olathe, Kansas. The terms of each lease are thirty six months, which commenced on July 1, 2010. Rent will be paid monthly in the amount of $5 thousand to Jan-Mar LLC and $3 thousand to the CW Investment Group LLC. |