Related Party Transactions

12 Months Ended

Dec. 31, 2016

15.	Related Party Transactions

During 2016, 2015 and 2014, we paid fees of $0.4 million per year to Icarus for management consulting services. These services were provided by Jason DeZwirek, our Chairman of our Board, through Icarus. During 2016, 2015 and 2014, we paid fees of $0.1 million, $0.3 million and $0.1 million, respectively, for consulting services to JMP Fam Holdings Inc., through which Jonathan Pollack, a member of the Board of Directors, provides services. All services described above are based on verbal agreements with the Company. The Board of Directors approves the above services on an annual basis.

During the year ended December 31, 2016, the Company issued 89,640 shares of common stock to Icarus in connection with a cashless exercise of a warrant. In 2016, the Company entered into an agreement to repurchase 75,000 shares of common stock from a current segment president. See Note 10 for further detail related to these transactions.

During 2016, 2015, and 2014, we incurred rent expense of $1.1 million, $1.1 million, and $0.3 million, respectively, to lease facilities at the Adwest, Zhongli, and Emtrol subsidiaries. These are recently acquired subsidiaries, and the facilities are owned by the former owners of these subsidiaries. The Company currently employs the former owners in a managerial role at the respective subsidiaries.

During 2016 and 2015, we purchased $0.8 million and $0.3 million in inventory from a company owned by the former owner of the Zhongli subsidiary. During 2016 and 2015, we sold zero and $0.4 million of inventory to the same company. The Company currently employs the former owner in a managerial role at this subsidiary.