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Related Party Transactions
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9 Months Ended |
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Sep. 30, 2014
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| 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 nine month period ended September 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 September 30, 2014 and December 31, 2013. The Company recognized rent expense of $60,000 and $180,000, each for the three and nine month periods ended September 30, 2014 and 2013, respectively. EIM also made a loan to one of its managing directors. As of September 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 nine months periods ended September 30, 2014 were approximately $0.1 million and $0.2 million. For the three and nine months ended September 30, 2013, total rent expense incurred was less than $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. At September 30, 2014, the remaining outstanding balance was approximately $1.25 million.
AIA Noncontrolling Interests Acquisition
In April 2014, the Company acquired the remaining outstanding shares in AIA for a total cash consideration of approximately $21.7 million (the "AIA Consideration"). 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%, which was paid in full during the three months ended September 30, 2014.
Warrant Exchange
In connection with the Company's offer for the exchange of the Company's outstanding public company warrants for common stock of the Company which closed on September 11, 2014, two members of the Company's board of directors exchanged 7,040,001 warrants for 2,346,446 shares of the Company's common stock with an aggregate value of $32.1 million.
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