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Related Party Transactions
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9 Months Ended |
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Sep. 30, 2013
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
PAR Backstop Fee
In connection with the closing of the Row 44 Merger, the Company paid PAR $11.9 million under a backstop fee agreement. This was recorded as transaction costs reflected in operating results as a general and administrative expense in the nine month period ended September 30, 2013.
Agreement with Board Member and Former AIA Executive
During the three months ended September 30, 2013, the former CEO of AIA, who is also a current Board member, entered into a consulting agreement and mutual general release, which was subsequently amended (as so amended, the “Consulting Agreement”). The Consulting Agreement provides that, amongst other things, the former executive is entitled to certain remuneration, at the former executive’s option, in exchange for certain releases and subject to the Company closing an equity offering by January 1, 2014, in the form of (i) $3.0 million in cash or (ii) $1.0 million in cash and $2,000,000 in fully vested common shares (subject to certain limitations). If the equity offering does not occur by January 1, 2014, the Company would be required to issue the former executive 300,000 in fully vested common shares at no cost to the former executive (collectively, the “Remuneration Payment”). In addition the former executive (i) entered into a consulting arrangement at a rate of $41,666 per month, commencing September 2013 and ending on the date the Remuneration Payment is made and (ii) received a new stock option grant of 25,000 in September 2013 for his service as a Board member, which vests monthly over two years beginning on the date of grant. During the three months ended September 30, 2013, the Company recorded an expense of approximately $2.8 million associated with its Remuneration Payment obligation.
Share Repurchases
During the three months ended September 30, 2013, the Company repurchased approximately 95,000 shares of its common stock, at a price of $11.25 per share, from certain officers of the Company for the purpose of satisfying certain federal and state employment tax withholding obligations related to the January 2013 Business Combination. Upon the repurchase, the shares were cancelled.
Administrative Services
AIA's subsidiary, Entertainment in Motion (“EIM”), rents office space belonging to a company in which AIA's management has an ownership interest. There were no unpaid lease liabilities as of September 30, 2013 and December 31, 2012. The Company recognized rent expense of $60,000, $180,000, $0, and $0 for the three and nine months ended September 30, 2013 and 2012, respectively. EIM also made a loan to one of its managing directors. As of September 30, 2013, the outstanding balance was less than $0.1 million.
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