Related Parties |
9 Months Ended |
|---|---|
Sep. 30, 2016 | |
| Related Party Transactions [Abstract] | |
| Related Parties |
9. RELATED PARTIES
The Company paid commissions to a company owned by its Executive Chairman, such company is referred to as FGI, totaling $0 during the three and nine months ended September 30, 2016 and $17,000 and $43,250 during the three and nine months ended September 30, 2015, respectively, for business development related to installations of EV charging stations by the Company in accordance with the support services contract. These amounts are recorded as compensation on the condensed consolidated statements of operations. These amounts were paid pursuant to a Fee/Commission Agreement entered into by the Company and FGI on November 17, 2009.
FGI and the Companys Chief Operating Officer (COO) have made certain claims for historical unpaid compensation pursuant to their Fee/Commission Agreements with the Company. During November 2016, the Companys Board of Directors quantified the total claims to be approximately $475,000 for each party and, upon further analysis, determined the Companys reasonable estimate of the aggregate liability is $400,000 (estimated as $217,000 payable in cash and $183,000 payable in stock options) which was accrued and is included within accrued expenses on the condensed consolidated balance sheet as of September 30, 2016.
In addition, FGI has made a claim that expired warrants to purchase an aggregate of 5,733,335 shares of common stock should be replaced pursuant to an agreement with the Company. As of the filing date, the fair value of the warrant claim is estimated to be approximately $1,000,000. The Company believes this claim is without merit.
A committee of the Board expects to resolve all claims made by FGI (including the possible replacement warrants) by the end of the fiscal year. Separately, a committee of the Board expects to resolve all claims made by the COO by the end of the fiscal year.
The Company incurred accounting and tax service fees totaling $0 for the three and nine months ended September 30, 2016 and $7,655 and $32,573 for the three and nine months ended September 30, 2015, respectively, provided by a company that is partially owned by the Companys former Chief Financial Officer. This expense was recorded as general and administrative expense.
See Note 6 - Notes Payable - Convertible and Other Notes - Related Party and Note 10 Commitments and Contingencies Patent License Agreement. |