Related Parties

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Related Parties

16. Related Parties

Non-Operating Corporate

Pansend has an investment in Triple Ring Technologies, Inc. ("Triple Ring"). Various subsidiaries of HC2 utilize the services of Triple Ring, incurring zero and $0.3 million in services for the three months ended June 30, 2021 and 2020, and zero and $1.0 million in services for the six months ended June 30, 2021 and 2020, respectively.

In September 2018, the Company entered into a 75-month lease for office space. As part of the agreement, HC2 was able to pay a lower security deposit and lease payments, and received favorable lease terms as consideration for landlord required cross default language in the event of default of the shared space leased by Harbinger Capital Partners, formerly a related party, in the same building. With the adoption of ASC 842, as of January 1, 2019, this lease was recognized as a right of use asset and lease liability on the Condensed Consolidated Balance Sheets.

Infrastructure

Banker Steel, a subsidiary of DBMG, has leased two office spaces from 2940 Fulks St LLC, a related party that is owned by Donald Banker, CEO of Banker Steel and a related party, with monthly lease payments of $10 thousand and a total lease liability of $0.2 million. For the three months ended June 30, 2021, and 2020, DBMG incurred lease expense of $10 thousand and zero, respectively, and for the six months ended June 30, 2021, and 2020, DBMG incurred lease expense of $10 thousand and zero, respectively.

Banker Steel has leased two planes from Banker Aviation LLC, a related party that is owned by Donald Banker, a related party, with monthly lease payments of $0.2 million and a total lease liability of $4.5 million. For the three months ended June 30, 2021, and 2020, DBMG incurred lease expense of $0.2 million and zero, respectively, and for the six months ended June 30, 2021, and 2020, DBMG incurred lease expense of $0.2 million and zero, respectively.

Banker Steel also has a subordinated note payable of $6.3 million to Donald Banker, a related party, that has a maturity date of June 30, 2024 at a 11% interest rate. For the three months ended June 30, 2021, and 2020, DBMG incurred interest expense of $0.1 million and zero, respectively, and for the six months ended June 30, 2021, and 2020, DBMG incurred interest expense of $0.1 million and zero, respectively.