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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2019
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTY TRANSACTIONS

 

Related Party Debt

 

As described in Note 10, the Company issued Subordinated Debt to Main Street and PCP Investors. Both lenders were stockholders of the Company. For the year ended December 31, 2017, Main Street received interest payments of $0.5 million. For the year ended December 31, 2017, PCP Investors received interest payments of $0.5 million. In conjunction with the Business Combination, the Main Street Loan and the PCP Subordinated Notes were both repaid in February 2017. See Note 3 for additional details on the Business Combination.

 

As disclosed in Note 10, the LST seller received subordinated notes as partial consideration. Interest paid to the LST seller was $0.4 for the year ended December 31, 2017. In conjunction with the Business Combination, the LST Seller Notes were repaid in February 2017. See Note 3 for additional details on the Business Combination.

 

As disclosed in Note 10, the BHE Sellers received subordinated notes as partial consideration. Interest paid for the year ended December 31, 2017 was immaterial. In conjunction with Business Combination, the BHE Seller Notes were repaid in February 2017. See Note 3 for additional details on the Business Combination.

 

 

 

 

 

 

 

 

 

 

 

Other Related Party Transactions

 

An employee and stockholder has a 1% investment in an entity that is also a Company vendor. Total amounts paid to this vendor for product and subscription purchases were approximately $0.6 million for each of the years ended December 31, 2019,  2018 and 2017, respectively. Amounts due to the vendor as of December 31, 2019 and 2018 totaled approximately $9,000 and $10,000, respectively.

 

The Company does business with an entity in which two employees, who are also stockholders, are minority owners. Revenue received from this customer totaled approximately $0.4 million, $0.7 million and $0.4 million for the years ended December 31, 2019,  2018 and 2017, respectively. Accounts receivable due from this entity totaled approximately $24,000 and $51,000 as of December 31, 2019 and 2018, respectively.

 

The Company sold equipment to an entity partially owned by an employee and stockholder for proceeds of $1.0 million with a net book value of $0.8 million, realizing a gain of $0.2 million for the year ended December 31, 2018. There were no such transactions for the years ended December 31, 2019 and 2017.

 

Additionally, the Company does business with a carrier owned by a stockholder’s spouse. Revenue received from this carrier totaled approximately $1.8 million, $0.1 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017. Accounts receivable due from this entity totaled approximately $19,000 and $71,000 as of December 31, 2019 and 2018.