Note 7. Related Party Transactions

During the fiscal years ended April 30, 2017 and 2016, the Company purchased inventories for resale totaling approximately $378,000 and $381,000, respectively, from Sheerr Memory, LLC (“Sheerr Memory”). Sheerr Memory’s owner (“Mr. Sheerr”) was employed by the Company as an advisor until August 31, 2016. Accounts payable of approximately $47,000 and approximately $11,000 in the Company’s consolidated balance sheets as of April 30, 2017 and April 30, 2016, respectively, is payable to Sheerr Memory. Sheerr Memory offers the Company trade terms of net 30 days and all invoices are settled in the normal course of business. No interest was paid.

During the fiscal years ended April 30, 2017 and 2016, the Company purchased inventories for resale totaling approximately $1,192,000 and $1,181,000, respectively, from Keystone Memory Group (“Keystone Memory”). Keystone Memory’s owner is a relative of Mr. Sheerr. Approximately $87,000 and $190,000 of accounts payable in the Company’s consolidated balance sheets as of April 30, 2017 and 2016 respectively, is payable to Keystone Memory. The Company offers trade terms of immediately due and all invoices are settled in the normal course of business. No interest is paid.

As of October 31, 2013, the Company entered into an agreement with David Sheerr, a related party, to leaseback the equipment and furniture that was sold to Mr. Sheerr on October 31, 2013, see Note 4.