United Communications Partners Inc (UCPA)

[naturalborninvestor]

yes, that is certainly one possible explanation.

But I also think they inflate the cost structure of UCP with related-party transactions. USD 372k was paid to companies controlled by 2 directors in 2013, to the "President and Chairman of the Board" (which should be Fröberg) and to "Secretary and Director of the Board" (which should be Grandinson). It is not clear to me whether these payments are in addition to a normal salary, or if they replace a salary. I just find it unusual that a salary would be paid to a company controlled by the person, rather than the person directly. The same 2 directors already control the majority of the company via majority shareholdings.

If the cost structure of the UCP holding company is approximately 1 million per year, as I estimated in prior calaculations, these related-party transactions constitute a significant (33%) stake of the cost.
source:
http://www.otcmarkets.com/financialReportViewer?symbol=UCPA&id=125152