Commitments and Related Party Transactions

6 Months Ended

Jun. 30, 2019

Commitments and Related Party Transactions [Abstract]

Commitments and Related Party Transactions

Note 4 — Commitments and Related Party Transactions

We lease our offices under an operating lease with a third party which expires in October 2019 (see Note 8).

We entered into a service agreement for the use of an aircraft from K2 Investment Fund LLC (“LLC”) for business travel for employees of the Company. We incurred approximately $326, and $885 compared to $75, and $683 in rental fees and reimbursements to the LLC during the three and six months ended June 30, 2019 and 2018, respectively. We pay for the Company’s usage of the aircraft and have no rights to purchase. Our Chief Executive Officer and Chief Administrative Officer are the managing partners of the LLC and control the equity interests of the LLC. We entered into a 12-month non-exclusive agreement with the LLC for use of the plane at a rate of $8 per flight hour, with no minimum usage requirement. The agreement contains other terms and conditions normal in such transactions and can be cancelled by either us or the LLC with 30 days’ notice. The agreement renews on an annual basis unless terminated by either party. Neither party has exercised their termination rights.