Net amounts due to related parties amounted to $1.2 million as of September 30, 2018 and $1.5 million as of December 31, 2017, respectively. The Company has not reserved any related party receivables as of September 30, 2018 and December 31, 2017.

 

The Company incurred approximately $0 and $26,000 for the three months ended September 30, 2018 and 2017, respectively, and approximately $42,000 and $0.4 million for the nine months ended September 30, 2018 and 2017, respectively, of legal fees to The Giannuzzi Group, a law firm owned by a former director of the Company who resigned in 2017. The Company also receives rental income for office space subleased to this entity. Rental income of approximately $50,000 was recorded from this entity for each of the three months ended September 30, 2018 and 2017. Rental income of approximately $0.2 million was recorded from this entity for each of the nine months ended September 30, 2018, and 2017. Amounts due to related parties, net at September 30, 2018 and December 31, 2017, included approximately $0.1 million and $0.3 million, respectively, due to this entity for legal services.

 

The Company incurred approximately $44,000 and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and approximately $0.3 million and $1.6 million for the nine months ended September 30, 2018 and 2017, 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. Included in amounts due from related parties, net at September 30, 2018 and December 31, 2017, is a balance due to this entity of approximately $58,000 and $27,000, 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”). 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. Amounts due to the trust are non-interest bearing and are repayable in 2021 when the trust expires. Included in due to related parties, long term at September 30, 2018 and December 31, 2017 is a balance due to the Liquidation Trust of approximately $1.2 million.

 

Please refer to Note 10 for details on other transactions with related parties.