Quarterly report pursuant to Section 13 or 15(d)

Entry into Management Service Agreement

v2.4.0.6
Entry into Management Service Agreement
6 Months Ended
Mar. 31, 2012
Entry into Management Service Agreement [Abstract]  
Entry into Management Service Agreement
3. Entry into Management Service Agreement

In conjunction with the Asset Purchase Agreement for DMCC and RFFG of Cleveland, BMP, an Ohio corporation and a wholly-owned subsidiary of the Company, entered into a management service agreement (the "Management Agreement") with RFFG, LLC ("RFFG"), effective November 1, 2010.

Pursuant to the Management Agreement, BMP agreed to provide services to RFFG to operate its day-to-day business, including services related to accounting, sales, finance, workers' compensation, benefits, physical locations, information technologies and employees.

In consideration of the services provided under the Management Agreement, RFFG, LLC agreed to pay BMP monthly fees that approximate 6% of its gross revenues on an annual basis.  For the three and six months ended March 31, 2011, approximately $288,000 and $450,000, respectively, of revenues were recorded related to this agreement.

Due to an unresolved issue with the Ohio Bureau of Workers Compensation, RFFG, LLC ceased operations as of July 15, 2011 and, as a result, the Management Service Agreement was effectively terminated.  No future revenues are expected related to this agreement.  At March 31, 2012, the Company has a $137,000 Management Fee Receivable related to this agreement.