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Related Party Transactions
6 Months Ended
Jun. 30, 2014
Related Party Transactions

Note 10. Related Party Transactions

The Company had approximately $50,000 in a non-interest bearing advance due from a founding shareholder of the Company as of December 31, 2013 and June 30, 2014. Scheduled repayments are made through payroll deductions.

The Company uses a ranch owned by certain shareholders to entertain employees and customers. For the use of the ranch, the Company paid and expensed $13,000 per month during the six months ended June 30, 2013 and 2014.

In February 2013, Multiband commenced business with Fowler Wind Energy LLC (Fowler), a company that is primarily owned (70.0%) by J. Basil Mattingly, a Vice President of Multiband. The Company provides wind tower labor to Fowler. Revenue recognized under the Company’s contract with Fowler was $0 for the six months ended June 30, 2014. At December 31, 2013 and June 30, 2014, Fowler owed the Company $1.0 million and $0.4 million, respectively, which is included in other assets in the accompanying consolidated balance sheets.

The Company leases offices located at 2000 44th Street SW, Fargo, ND 58013. The base rate is $23,000 per month through June 30, 2014. The property is owned in part by David Ekman, Chief Information Officer of Multiband.

From time to time, the Company engages in transactions with executive officers, directors, shareholders or their immediate family members of these persons (subject to the terms and conditions of the Notes and the Credit Facility). These transactions are negotiated between related parties without arm’s length bargaining and, as a result, the terms of these transactions could be different than transactions negotiated between unrelated persons.

See Note 12 – Commitments and Contingencies for other transactions among related parties.