Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question with Mark Argento with Craig-Hallum Capital. Please go ahead.
Mark Argento - Craig-Hallum Capital
A bunch of questions actually for you this morning, and thanks for the review. First off, on IRG, I think you had -- was it $3 million, $3 million and change in earned but unpaid reserves there for the acquisition price. What’s the likelihood that you will actually have to pay that $3 million and change to the former owners of IRG and what’s the process involved in figuring that out?
James A. Burk
Well, it’s going to -- relate to the, you know, legal question. As you know, we are continuing our cooperation with the U.S. Attorney’s Office in the investigation and until those matters are resolved, we won’t know the status of the payment.
Mark Argento - Craig-Hallum Capital
And has that been -- is that actually reflected in the cash, your $6.6 million in cash or is that someplace else on the balance sheet?
James A. Burk
No, it’s in accrued expenses.
Mark Argento - Craig-Hallum Capital
Okay, so it doesn’t -- so it’s not encumbered, that $6.6 million, you wouldn’t have to pay it out of that $6.6 million?
James A. Burk
Right.
Mark Argento - Craig-Hallum Capital
Okay. And in terms of overall losses, what kind of losses did IRG actually generate in Q4 if we are trying to figure out what the drag was there? A couple million bucks, a million bucks -- you know, you can ballpark it.
And then while you are looking that up, another quick question on IRG would be of the $1.5 million that was confiscated by the feds, I assume that $1.5 million is gone and you can’t ask for that back, or you won’t be asking for that back. But of that $1.5 million, how much of that do you anticipate having to rebate or refund to customers? So I’m trying to get a better idea of what the net impact of that situation is.
Gary W. Sproule
Mark, you are correct in the first assumption that the 1.5 was seized and it will be retained by the U.S. Attorney. That was part of the settlement agreement we recently executed with them. It is our intent to pay out any remaining customer balances as long as it’s cleared by the U.S. Attorney as part of our cooperation with them.
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