Note 9 - Related Party Transactions

Net amounts due to related parties amounted to $1.5 million and $0.8 million as of December 31, 2017 and 2016, respectively. The Company has reserved $0 and $0.2 million of related party receivables as of December 31, 2017 and 2016, respectively. The Company wrote off related party receivables of $0.4 million during the year ended December 31, 2017.

In 2016, the Company incurred approximately $57,000 for design services by an entity owned by one of the Company’s stockholders. Included in due from related parties, net at December 31, 2017 and 2016 is a balance due to this entity of approximately $9,500 and $22,000, respectively.

The Company incurred legal fees of approximately $0.5 million and $0.4 million in 2017 and 2016, respectively, to an entity owned by one of its stockholders, who is also a former director of the Company. The Company also receives rental income for an office space subleased to this entity. Rental income of $0.2 million was recorded from this entity for each of the years ended December 31, 2017 and 2016. Included in due from related parties, net at December 31, 2017 and 2016 is a balance due to this entity of approximately $0.3 million and $0.2 million, respectively.

The Company incurred approximately $1.7 million and $5.9 million in 2017 and 2016, respectively, for construction services to an entity owned by family members of one of the Company’s stockholders, who is also a former employee of the Company. Construction related deposits of $0.3 million paid to this entity were included in other current assets as of December 31, 2016. The balance of these deposits was $0 as of December 31, 2017. Included in due from related parties, net at December 31, 2017 and 2016 is a balance due to this entity of approximately $27,000 and $11,000, respectively.

During the fourth quarter of 2016, the Company received approximately $1.2 million in cash advances from the TOG Liquidation Trust (the “Liquidation Trust”). Included in due to related parties, long term at December 31, 2017 and 2016 is a balance due to the Liquidation Trust of $1.2 million and $1.2 million, respectively. The TOG Liquidation Trust is a trust that was set up in connection with a 2013 merger transaction to hold previously issued and outstanding warrants held by members of the predecessor company. When warrants were exercised, the cash proceeds from the exercise of the warrants remained in the Trust. Amounts due to the trust are non-interest bearing and are repayable in 2021 when the trust expires. Please refer to Note 8 for details on other transactions with related parties.