17. Related Party Transactions

In August 2013, the Company entered into a two-year Management Services Agreement with 2012 DOOH Investments, LLC (the “Consultant”), an entity managed by Mr. Donald R. Wilson, a major stockholder. Under the agreement, the Consultant provides management consulting services to the Company and its subsidiaries with respect to financing, acquisitions, sourcing, diligence, and strategic planning.

In consideration for its services, the Consultant received a one-time payment of 120,000 shares of the common stock of the Company which had a market value of $960,000 when issued in August 2013. The value of the common stock is being amortized over the term of the agreement and related charges to operations for the years ended December 31, 2014 and 2013 were $504,750 and $175,250, respectively.  The unamortized value of the common stock was $280,000 and $784,750 at December 31, 2014 and 2013 respectively. The unamortized balance of the common stock at December 31, 2014 is included in other current assets. Under the Agreement, the Consultant also receives an annual services fee of $50,000. 

In addition, the Company provides consulting services to an entity owned by Mr. Wilson for which it has recognized related consulting fees during the year ended December 31, 2014 of $400,000.

The Company also had an agreement with a company owned by a board member under which it paid $15,000 a month for public relations services. This agreement was terminated on June 30, 2014. Under this agreement the Company incurred charges for the year ended December 31, 2014 of $90,000.

As discussed in Note 4, the Company's former senior lender sold its interest in the Company's Senior Credit Facility to a new lender group that included the Company's Executive Chairman and largest shareholder. Interest expense paid to the new lender group was $698,333 during the year ended December 31, 2014.