Related party transactions |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Related Party Transactions [Abstract] | |
| Related party transactions |
Related party transactions:
Due from related parties consists of 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. As of December 31, 2015 and 2014, these advances amounted to $1,337,356 and $1,197,390, respectively.
The Company sub-leases office space to certain related parties, sub-lease income is netted against rent expense in the statement of operations and comprehensive income, sub-lease income was $780,000 and $780,000 for the years ended December 31, 2015 and 2014, respectively.
The Company incurred $432,000 and $404,000 in 2015 and 2014, respectively, for design services at the various restaurants to an entity owned by one of the stockholders.
The Company incurred $547,000 and $552,000 in 2015 and 2014, respectively, for legal fees to an entity owned by one of the stockholders. Included in accounts payable at December 31, 2015 and 2014 is a balance due to this entity of approximately $105,000 and $70,000, respectively.
The Company incurred $12.2 million and $4.8 million in 2015 and 2014, respectively, for construction services to an entity owned by one of the Company’s employees. Included in accounts payable at December 31, 2015 and 2014 is a balance due to this entity of approximately $0 and $11,000, respectively.
The CEO of the Company is a limited personal guarantor of the leases for the STK Miami 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 CEO is a limited personal guarantor of the leases 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 is obligated to pay management fees equal to 2% of revenues to a member for the life of the lease. Management fees amounted to $39,675 and $81,608 in 2015 and 2014, respectively. Included in accounts payable at December 31, 2015 and 2014 are amounts due for management fees of $542 and $8,180, respectively.
|