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RELATED PARTY TRANSACTIONS
12 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
 
Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. Through March 6, 2019, Kaupulehu Developments was also entitled to receive 50% of distributions otherwise payable from KD II to its members up to $8,000,000, of which $3,500,000 was received. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments and percentage of distribution payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 4.
 
During the year ended September 30, 2019, Barnwell received $165,000 in percentage of sale payments from KD I from the sale of one lot within Increment I. During the year ended September 30, 2018, Barnwell received $1,645,000 in payments, of which $1,000,000 was related to the 50% of distributions otherwise payable from KD II to its members after the members of KD II received distributions equal to the original basis of capital invested in the project. The remaining $645,000 in payments was due to percentage of sales payments from KD I from the sale of three lots within Phase II of Increment I.

Barnwell has a compensation-based gross overriding royalty arrangement with a Canadian corporation owned and controlled by Barnwell of Canada’s President and Chief Operating Officer. The overriding royalty is based on 1% of the gross revenues received by Barnwell of Canada from certain oil and natural gas wells drilled or working interests acquired as specified in the underlying agreements. As of September 30, 2019, no amount was accrued for under this arrangement. This amount may change in the future depending upon any future wells drilled or working interests acquired that are included in the arrangement.

On March 27, 2019, the Company made a $300,000 loan to Mr. Terry Johnston, an affiliate of the Company through his controlling interests in certain entities within our land investment segment partnerships, and the Company was given an unsecured promissory note in return. The maturity date of the note was July 31, 2019, whereupon all principal and interest outstanding was due. Interest accrued at 8% per annum on the unpaid principal amount. The promissory note receivable, including accrued interest, was paid in full on the maturity date.