Camarillo, California Facility: We have a facilities agreement with Qualstar to allow us to use a portion of the office and warehouse facility leased by Qualstar in Camarillo, California, and we have agreed to split substantially all rent and lease related costs on an apportioned basis according to the approximate relative usage levels by each entity. For the years ended December 31, 2022 and 2021, we incurred $73 thousand and $72 thousand, respectively, for our use of Qualstar’s Camarillo facility.
Los Angeles, California Facility: Commencing in March 2022, we have a facilities agreement with Qualstar to allow it the use of a portion of the office leased by us in Los Angeles, California, and we have agreed to split substantially all rent and lease-related costs on an apportioned basis according to the approximate relative usage levels by each entity. For the year ended December 31, 2022, we billed Qualstar $8 thousand for Qualstar’s use of our Los Angeles office facility.
Consulting Agreements: We have entered into various consulting agreements with Qualstar and BKF Capital. Pursuant to the consulting agreements, certain of the parties’ respective employees and independent contractors provide operational, sales, marketing, general and administrative services to the other entity. Interlink provided such consulting services to Qualstar in the amounts of $646 thousand and $756 thousand for the years ended December 31, 2022 and 2021, respectively. Interlink provided such consulting services to BKF Capital in the amounts of $73 thousand and $65 thousand for the years ended December 31, 2022 and 2021, respectively. Qualstar provided such consulting services to Interlink in the amounts of $12 thousand and $14 thousand for the years ended December 31, 2022 and 2021, respectively. BKF Capital provided such consulting services to Interlink in the amounts of $26 thousand and $0 thousand for the years ended December 31, 2022 and 2021, respectively.
M&A Advisory Consulting Agreement: Effective July 2021, we entered into a M&A advisory consulting services agreement with Bronson Financial LLC, a wholly owned subsidiary of BKF Capital, in which Bronson Financial LLC provides mergers and acquisitions advisory consulting services to Interlink for $10 thousand per month. For the years ended December 31, 2022 and 2021, we incurred $120 thousand and $60 thousand for services rendered under this agreement.
Expense Reimbursements: Additionally, the parties occasionally pay expenses on behalf of one another, for which each party reimburses the other party correspondingly. We incurred reimbursable expenses on behalf of Qualstar in the amounts of $90 thousand and $82 thousand for the years ended December 31, 2022 and 2021, respectively. We incurred reimbursable expenses on behalf of BKF Capital in the amounts of $23 thousand and $13 thousand for the years ended December 31, 2022 and 2021, respectively. Qualstar incurred reimbursable expenses on behalf of us in the amounts of $11 thousand and $16 thousand for the years ended December 31, 2022 and 2021, respectively.
Indemnification Agreements
Pursuant to our bylaws, we will indemnify our directors and executive officers to the fullest extent permitted by Nevada law, without limitation as to amount or duration, in the event of any actual or threatened lawsuit or proceeding.
Policies and Procedures for Related Party Transactions
Our audit committee has the primary responsibility for reviewing and approving or disapproving “related party transactions,” which are transactions between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed $120,000 or 1% of our average total assets at December 31, 2022 and 2021 and in which a related person has or will have a direct or indirect material interest. Our policy regarding transactions between us and related persons provides that a related person is defined as a director, executive officer, nominee for director or greater than 5% beneficial owner of our common stock, in each case since the beginning of the most recently completed year, and any of their immediate family members. Our audit committee charter provides that our audit committee shall review and approve or disapprove any related party transactions.
Director Independence
Our common stock is listed on the Nasdaq Capital Market. Under the rules of The Nasdaq Stock Market, LLC, or Nasdaq, independent directors must comprise a majority of a listed company’s board of directors. In addition, the Nasdaq rules require that, subject to specified exceptions, each member of a listed company’s audit, compensation and nominating and corporate governance committees be independent. Under the Nasdaq rules, a director will only qualify as an “independent director” if, in the opinion of that company’s board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.