Related party transactions |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Related Party Transactions [Abstract] | |
| Related party transactions |
Related party transactions:
Due 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. As of March 31, 2017 and December 31, 2016, these advances aggregated to a total of $708,411 and $415,773, respectively. Also included are amounts due to board members in connection with their quarterly fees of $47,500.
Included in due from related parties, net at March 31, 2017 and December 31, 2016 is a balance due to an entity for design services owned by one of the Company's shareholders, this entity of approximately $22,000 and $0, respectively.
The Company incurred approximately $66,000 and $84,000 for the three months ended March 31, 2017 and 2016, respectively, for legal fees to an entity owned by one of the Company’s shareholders. Included in due from related parties, net at March 31, 2017 and December 31, 2016 is a balance due to this entity of approximately $99,000 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 March 31, 2017 and 2016, respectively, and there were no receivables outstanding from this entity at March 31, 2017 and December 31, 2016.
The Company incurred approximately $765,000 and $2.2 million for the three months ended March 31, 2017 and 2016, respectively, for construction services to an entity owned by one of the Company’s shareholders. Included in other assets are construction related deposits paid to this entity amounting to $250,000 as of March 31, 2017 and December 31, 2016. Included in due from related parties, net at March 31, 2017 and December 31, 2016 is a balance due to this entity of approximately $16,000 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") is obligated to pay management fees equal to 2% of revenues to a member for the life of the agreement. Bridge ceased operations in 2015. Included in accounts payable at December 31, 2016 are amounts due for management fees of $542.
|