Related party transactions
|12 Months Ended|
Dec. 31, 2016
|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, 2016 and 2015, these advances amounted to $415,773 and $1,337,356, respectively. Also included are amounts due to non-employee directors. Non-employee directors receive $40,000 per annum and directors who serve as chairman of committees earn an additional $10,000 per annum for such services.
The Company incurred approximately $57,000 and $432,000 in 2016 and 2015, respectively, for design services at the various restaurants to an entity owned by one of the stockholders. Included in due from related parties, net at December 31, 2016 and 2015 is a balance due to this entity of approximately $22,000 and $0, respectively.
The Company incurred approximately $440,000 and $547,000 in 2016 and 2015, respectively, for legal fees to an entity owned by one of the stockholders. Included in due from related parties, net at December 31, 2016 and 2015 is a balance due to this entity of approximately $240,000 and $105,000, respectively. The Company also received rental income for an office space sublease to this entity of $188,000 and $155,000 for the years ended December 31, 2016 and 2015, respectively, and there were no receivables outstanding at December 31, 2016 and 2015.
The Company incurred approximately $5.9 million and $12.2 million in 2016 and 2015, respectively, for construction services to an entity owned by one of the Company’s employees. Included in prepaid and other current assets are construction related deposits paid to this entity amounting to $250,000 as of December 31, 2016 and 2015. Included in due from related parties, net at December 31, 2016 and 2015 is a balance due to this entity of approximately $11,000 and $0, respectively.
The Chief Executive Officer 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. Bridge ceased operations in 2015. Management fees amounted to $0 and $39,675 in 2016 and 2015, respectively. Included in accounts payable at December 31, 2015 are amounts due for management fees of $542.
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.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef