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Related Party Transactions
12 Months Ended
Dec. 31, 2013
Related Party Transactions
Note 10—Related Party Transactions
 
A director of the Company is a partner in a law firm that acts as counsel to the Company. The Company incurred legal fees and expenses to the law firm in the amount of approximately $3.4 million in 2011, $2.9 million in 2012 and $3.0 million in 2013. As of December 31, 2012 and 2013, legal fees and reimbursable expenses of $0.5 million and $0.3 million, respectively, were payable to this law firm.
 
The owner of Nantworks, the Company’s DreamPlay Toys joint venture partner, beneficially owns 26.1% of the Company’s outstanding common stock, which includes 1.5 million shares underlying out-of-the-money warrants, or 6.6%. Pursuant to the joint venture agreements, the Company is obligated to pay Nantworks a preferred return on joint venture sales.
 
As of December 31, 2012 and 2013 preferred returns of nil and $188,000, respectively, were earned and payable to Nantworks.  In addition, the Company commenced leasing office space from Nantworks in 2013.  The lease expires on January 31, 2016.  Rent expense, including common area maintenance and parking, for the year ended December 31, 2013 was $0.8 million.