Related party transactions |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Related Party Transactions [Abstract] | |
| Related party transactions |
Related party transactions:
Due to/from related parties (including equity investees) includes amounts related to the Company and its related entities which arose from noninterest bearing cash advances and are expected to be repaid within the next twelve months. These amounts aggregated to a total of $359,302 due to related parties at June 30, 2017and $415,773 due from related parties at December 31, 2016. Also included are amounts due to non-employee board members in connection with their quarterly fees in an aggregate amount of $95,000.
The Company incurred approximately $276,000 and $128,000 for the three months ended June 30, 2017 and 2016, respectively, and $342,000 and $212,000 for the six months ended June 30, 2017 and 2016, respectively, for legal fees to an entity owned by one of the Company’s directors. Included in due to/from related parties, net at June 30, 2017 and December 31, 2016 is a balance due to this entity of approximately $276,000 and $240,000, respectively. The Company also received rental income for an office space sublease to this entity of $48,000 and $47,000 for the three months ended June 30, 2017 and 2016, respectively, and $96,000 and $93,000 for the six months ended June 30, 2017 and 2016, respectively. There were no receivables outstanding from this entity at June 30, 2017 and December 31, 2016.
The Company incurred approximately $391,000 and $603,000 for the three months ended June 30, 2017 and 2016, respectively, and $1.2 million and $2.8 million for the six months ended June 30, 2017 and 2016, respectively, for construction services to an entity owned by family members of one of the Company’s shareholders. Included in other current assets are construction related deposits paid to this entity amounting to $250,000 as of June 30, 2017 and December 31, 2016. Included in due to/from related parties, net at June 30, 2017 and December 31, 2016 is a balance due to this entity of approximately $9,000 and $11,000, respectively.
The Chief Executive Officer of the Company is a limited personal guarantor of the lease for the STK Miami Beach premises with respect to certain covenants under the lease relating to construction of the new premises and helping the landlord obtain a new liquor license for the premises in the event of termination of the lease. The Chief Executive Officer is also a limited personal guarantor of the lease for the Bagatelle New York premises with respect to JEC II, LLC’s payment and performance under the lease.
Pursuant to its amended and restated operating agreement executed in June 2007, Bridge Hospitality, LLC ("Bridge") was obligated to pay management fees equal to 2% of revenues to a member for the life of the agreement. Bridge ceased operations in 2015.
The Company received approximately $1.2 million as proceeds from the exercise of warrants that were a part of the TOG Liquidation Trust. Included in due to related parties, long term at December 31, 2016 is a balance due to the Liquidation Trust of $1.2 million. The TOG Liquidating Trust (“Trust”) was a trust set up to hold warrants which were previously issued and outstanding to members of The One Group LLC prior to the Merger with Committed Capital Acquisition Corp. ("CCAC") in order to hold the shares that were underlying the warrants. When warrants were exercised the proceeds from the exercise of the warrants were recorded into the Trust. Amounts due to the trust are non-interest bearing and are repayable in 2021 when the trust expires.
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