Related party transactions |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Related Party Transactions [Abstract] | |
| Related party transactions |
Related party transactions:
Net amounts due from related parties, which are expected to be repaid within the next twelve months, amount to $26,367 as of September 30, 2017. Net amounts due from related parties, which are expected to be collected within the next twelve months, amount to $415,773 as of December 31, 2016.
Included in amounts due from related parties are non-interest bearing cash advances, management fees and reimbursable expenses (See Note 12) aggregating to $548,823 and $711,885 as of September 30, 2017 and December 31, 2016, respectively.
The Company incurred approximately $26,000 and $71,000 for the three months ended September 30, 2017 and 2016, respectively, and approximately $368,000 and $283,000 for the nine months ended September 30, 2017 and 2016, respectively, for legal fees to an entity owned by one of the Company’s directors. Included in due from related parties are balances owed to this entity amounting to approximately $236,000 and $238,000 as of September 30, 2017 and December 31, 2016. The Company also received rental income for an office space sublease to this entity of approximately $47,000 and $47,000 for the three months ended September 30, 2017 and 2016, respectively, and approximately $139,000 and $140,000 for the nine months ended September 30, 2017 and 2016, respectively. There were no receivables outstanding from this entity at September 30, 2017 and December 31, 2016.
The Company incurred approximately $456,000 and $1.5 million for the three months ended September 30, 2017 and 2016, respectively, and approximately $1.6 million and $4.4 million for the nine months ended September 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 September 30, 2017 and December 31, 2016. Included in amounts due from related parties are balances owed to this entity amounting to $191,438 and $10,642 as of September 30, 2017 and December 31, 2016.
Amounts due to the Company’s non-employee directors for Board service amounted to $95,000 and $47,000 as of September 30, 2017 and December 31, 2016, respectively.
The Company received approximately $1.2 million during the fourth quarter of 2016, as proceeds of advances from the TOG Liquidation Trust. Such amount is presented in due to related parties, long term in the consolidated balance sheets as of September 30, 2017 and December 31, 2016. The TOG Liquidating 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 transaction discussed in Note 11. 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.
The Executive Chairman of the Board 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 Executive Chairman of the Board is also a limited personal guarantor of the lease for the Bagatelle NY premises with respect to JEC II, LLC’s payment and performance under the lease.
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