|
Related Party Transactions
|
6 Months Ended |
|---|---|
|
Jun. 30, 2014
|
|
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
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 six month period ended June 30, 2013.
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 June 30, 2014 and December 31, 2013. The Company recognized rent expense of $60,000 and $120,000, each for the three and six month periods ended June 30, 2014 and 2013, respectively. EIM also made a loan to one of its managing directors. As of June 30, 2014, the outstanding balance was less than $0.1 million.
Office Lease Agreement with Employee
In connection with the acquisition of PMG, the Company acquired an office lease that is currently being occupied and used as part of operations in Irvine, California. This building is majority owned by one of the founding members of PMG, who is currently an employee of the Company. The lease terminates on March 31, 2024. The total rental expense incurred during the three and six months periods ended June 30, 2014 and 2013 was approximately $0.1 million.
PMG Post-Closing Payment
In June 2014, the Company modified the PMG Earn Out to waive the PMG Earn Out and certain other purchase obligations and PMG seller rights in exchange for cash consideration of $2.5 million (the “Additional PMG Consideration”). Fifty percent of the additional PMG Consideration is payable after 10 days from closing, and the remaining $1.25 million paid in four quarterly installments through the first half of 2015.
AIA Noncontrolling Interests Acquisition
In April 2014, the Company acquired the remaining outstanding shares in AIA for a total consideration of approximately $22.0 million (the "AIA Consideration"), of which approximately $18.2 million was paid in cash as of June 30, 2014. Included in the AIA Consideration was approximately $2.5 million owed to BF Ventures, an entity in which one of our directors owns an indirect stake of approximately 25%.
|