As of September 30, 2021, the Company had no outstanding borrowings from related parties compared to $29.8 million as of December 31, 2020. See Note 7 Debt for further information about the Company’s related party debt.

The following table sets forth payment guarantees of the Company's obligations as of September 30, 2021 that have been provided by DNI. DNI owns approximately 37.1% of the outstanding shares of the Company's common stock. The amount guaranteed exceeds the principal amounts of outstanding obligations due to collateral requirements by the banks.

Sales, cost of revenue, research and product development, selling, marketing, general and administrative, interest expense and other expenses to and from related parties were as follows (in thousands) for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30, 2021
Counterparty	Sales		Cost of revenue		Research and product development		Selling, marketing, general and administrative		Interest expense		Other expenses
DNI	$	54	$	45	$	253	$	394	$	—	$	42
Dasan Invest*		—		10		43		19		—		—
	$	54	$	55	$	296	$	413	$	—	$	42

	Three Months Ended September 30, 2020
Counterparty	Sales		Cost of revenue		Research and product development		Selling, marketing, general and administrative		Interest expense		Other expenses
DNI	$	552	$	485	$	306	$	523	$	324	$	93
	$	552	$	485	$	306	$	523	$	324	$	93

	Nine Months Ended September 30, 2021
Counterparty	Sales		Cost of revenue		Research and product development		Selling, marketing, general and administrative		Interest expense		Other expenses
DNI	$	1,965	$	1,791	$	776	$	1,185	$	132	$	180
Dasan Invest*		—		30		134		57		—		—
	$	1,965	$	1,821	$	910	$	1,242	$	132	$	180

	Nine Months Ended September 30, 2020
Counterparty	Sales		Cost of revenue		Research and product development		Selling, marketing, general and administrative		Interest expense		Other expenses
DNI	$	2,077	$	1,887	$	690	$	1,183	$	763	$	263
Dasan Invest*		—		20		81		55		—		—
	$	2,077	$	1,907	$	771	$	1,238	$	763	$	263

The Company has entered into sales agreements with DNI to sell certain services and finished goods produced by the Company. The Company also has an agreement with DNI in which DNI acts as a sales channel to third party customers. The above transactions are included in sales and cost of revenue on the unaudited condensed consolidated statement of comprehensive income (loss). Sales to DNI are recorded net of royalty fees for a sales channel arrangement.

DNS California shares human resources, treasury and other administrative support with DNI. As such, the Company entered into certain service sharing agreements with DNI and certain of its subsidiaries for the shared office space and shared administrative services.

DNS Korea has two separate lease agreements with DNI related to the lease of office space and warehouse facilities. Operating lease cost related to these leases totaled $0.4 million for three months ended September 30, 2021 and 2020, respectively. Operating lease cost related to these leases totaled $1.3 million for the nine months ended September 30, 2021 and 2020, respectively. Operating lease expense is allocated between cost of revenue, research and product development, and selling, marketing, general and administrative expenses on the unaudited condensed consolidated statement of comprehensive income (loss). As of September 30, 2021, the right-of-use asset and operating lease liability related to these leases were $6.7 million. As of December 31, 2020, the right-of-use asset and operating lease liability related to these leases were $8.6 million.

The Company has an agreement with Dasan Invest to provide IT services for the Company. The respective expense is allocated between cost of revenue, research and product development, and selling, marketing, general and administrative expenses on the unaudited condensed consolidated statement of comprehensive income (loss).

Interest expense represents interest paid to DNI for the related party debt. Refer to Note 7 Debt for further information.

Other expenses represent expenses to DNI for its payment guarantees relating to the Company's borrowings. The Company pays DNI a guarantee fee which is calculated as 0.9% of the guaranteed amount. Refer to the table above for further information about obligations guaranteed by DNI.

Balances of receivables and payables arising from sales and purchases of goods and services with related parties as of September 30, 2021 and December 31, 2020 were included in the following balance sheet captions on the unaudited condensed consolidated balance sheets, as follows (in thousands):

	As of September 30, 2021
Counterparty	Account receivables		Other receivables		Other assets		Loans Payable		Accounts payable
DNI	$	106	$	215	$	693	$	—	$	564
Dasan Invest*		—		—		—		—		26
	$	106	$	215	$	693	$	—	$	590

	As of December 31, 2020
Counterparty	Account receivables		Other receivables		Other assets		Loans Payable		Accounts payable
DNI	$	2,278	$	247	$	755	$	29,754	$	1,552
Dasan Invest*		—		—		—		—		32
	$	2,278	$	247	$	755	$	29,754	$	1,584