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Related Party Transactions
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3 Months Ended |
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Mar. 31, 2015
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
Administrative Services
One of the Company's subsidiaries rents office space belonging to a company in which a member of such subsidiary's management has an ownership interest. There were no unpaid lease liabilities as of March 31, 2015 and December 31, 2014. The Company recognized rent expense of $60,000 each for the three month periods ended March 31, 2015 and 2014, respectively.
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 was an employee of the Company at March 31, 2015. The lease terminates on March 31, 2024. The total rental expense incurred during the three months periods ended March 31, 2015 and 2014 was less than $0.1 million.
PMG Post-Closing Payment
In connection with the Company's purchase of substantially all of the assets of PMG in June 2013, the Company agreed to a post-closing payment based on the fulfillment of certain post-closing employment obligations by certain PMG executives (the "PMG Earn Out"), which the Company is required to account for as compensation to the sellers and is recognized as an expense, over the requisite service period. 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 was payable after 10 days from closing, and the remaining $1.25 million is payable in four quarterly installments through the first half of 2015. At March 31, 2015 and December 31, 2014, the remaining outstanding balance was approximately $0.6 million and $0.9 million, respectively. During the quarter ended March 31, 2015, the Company further modified the PMG Earn Out to accelerate the payment of the remaining $0.6 million payment to April 2015.
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 year ended December 31, 2014.
AIA Earn-Out
The Company recognized an expense of $1.4 million during the year ended December 31, 2014 as a result of the
remeasurement of the fair value of the earn-out liability acquired in the AIA stock acquisition. The earn-out is payable to a former and current employee of EIM, a wholly owned subsidiary. At March 31, 2015 and December 31, 2014, the outstanding balance relating to the earn-out liability was $1.7 million.
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