Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Related Party Transactions

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Note 8 - Related Party Transactions
9 Months Ended
Jan. 01, 2017
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE
8.
RELATED PARTY TRANSACTIONS
 
Alonim Investments Inc.
 
Alonim Investments Inc. (“Alonim”) through its wholly-owned affiliate, Rodfre Holdings LLC, owns approximately
7.6
 million shares, or approximately
16%,
of our outstanding common stock as of
January
1,
2017.
As such, Alonim is our largest stockholder. Future Electronics Inc. (“Future”) is also an affiliate of Alonim and our largest distributor. One of our directors is an executive officer of Future. Our related party transactions primarily involved sales to Future.
 
Related party net sales as a percentage of our total net sales for the periods indicated below were as follows:
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
January 1,
 
 
December 27,
 
 
January 1,
 
 
December 27,
 
 
 
2017
 
 
2015
 
 
2017
 
 
2015
 
Future and affiliates of Alonim
   
31%
     
33%
     
28%
     
25%
 
 
 
Related party receivables as a percentage of our net accounts receivables were as follows as of the dates indicated below:
 
 
 
January 1,
 
 
March 27,
 
 
 
2017
 
 
2016
 
Future and affiliates of Alonim
   
28%
     
17%
 
 
 
Related party expenses for marketing promotional materials reimbursed were not significant for the
three
months and
nine
months ended
January
1,
2017
or
December
27,
2015.
 
FusionOps, Inc.
 
The former CEO of FusionOps, Inc. is a member of the Board of Directors for Exar. For the
three
and
nine
months ended
December
27,
2015,
we paid
$28,200
and
$81,400,
respectively to FusionOps, Inc. to build an application for internal data analysis. Through
July
2016
in fiscal year
2017,
we paid
$82,200
to FusionOps, Inc. We recorded these amounts as expenses in the periods in which such costs were incurred. Our board member who was previously affiliated with FusionOps, Inc., resigned from FusionOps, Inc. in
July
2016.
 
Interim President and Chief Executive Officer (“Interim CEO”)
 
Richard Leza served as our interim CEO through
May
31,
2016
when the Board of Directors appointed him as Executive Chairman and Technology Advisor. For the
nine
months ended
January
1,
2017
we paid
$0.1
million and issued
8,000
fully vested restricted stock units with a grant date fair value of
$52,600
for his services provided. On
June
30,
2016,
Mr. Leza resigned as our Executive Chairman and Technology Advisor.