Related Party Transactions |
12 Months Ended |
|---|---|
Dec. 31, 2017 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
Effective October 2015, Investacorp's lease with Frost Real Estate Holdings, LLC (“FREH”), an entity affiliated with the Company’s chairman of the board and principal shareholder, in an office building in Miami, Florida, was renewed and now expires in September 2020. The lease provides for aggregate payments during the five-year term of approximately $2,420 and minimum annual payments of $484. Rent expense under such lease amounted to $506, $522 and $382 in 2017, 2016 and 2015, respectively.
Ladenburg’s principal executive offices are located in the same office building in Miami, Florida, where approximately 14,050 square feet of office space is leased from FREH. Ladenburg’s lease was renewed effective March 2018 and now expires in February 2023 with two optional five-year extensions. The lease provides for aggregate payments during the remaining term of approximately $2,809 and minimum annual payment of $508. Rent expense under such lease amounted to $565, $706, and $734 in 2017, 2016 and 2015, respectively.
The Company is a party to an agreement with Vector, where Vector has agreed to make available to the Company the services of Vector’s Executive Vice President to serve as the President and Chief Executive Officer of the Company and to provide certain other financial, tax and accounting services. Various executive officers and directors of Vector serve as members of the board of directors of the Company, and Vector and its subsidiaries own approximately 7.83% of the Company’s common stock at December 31, 2017. In consideration for such services, the Company agreed to pay Vector an annual management fee plus reimbursement of expenses and to indemnify Vector. The agreement is terminable by either party upon 30 days’ prior written notice. The Company paid Vector $850 in 2017, 2016 and 2015 under the agreement and pays Vector at a rate of $850 per year in 2018.
In 2015, the Company entered into a Consulting Services Agreement with Nextt Advisors Inc., a corporation owned solely by the son-in-law (the “Consultant”) of the Company’s President and Chief Executive Officer. Pursuant to the agreement, the Company paid the Consultant $200 under the agreement in 2017, $186 in 2016 and $13 in 2015. Effective January 1, 2018, the consulting agreement was terminated and the consultant became an employee of the Company.
SSN has an operating lease for office facilities with Cogdill Capital LLC, an entity in which SSN's Chief Executive Officer and Chief Financial Officer are members and own a minority percentage of such entity, which expires in March 2020. Rent expense under such lease amounted to $285 in 2017, $276 in 2016 and $268 in 2015.
The Company is a party to an agreement with Castle Brands Inc. ("Castle") under which the Company provides certain administrative, legal and financial services to Castle. The Company's President and Chief Executive Officer, who is also a director of the Company, is also the President and Chief Executive Officer and a director of Castle. Various Company directors serve as directors of Castle, and the Company and Castle have the same principal shareholder. The Company received $260 in 2017, $173 in 2016 and $171 in 2015 under this agreement.
In connection with the offering of Notes, as more fully described in Note 12, certain members of management and the Board of Directors of the Company purchased $10,400 of the Notes offered by the Company. See also Note 12 for information regarding other loan transactions involving related parties.
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