Related party transactions

6 Months Ended

Jun. 30, 2022

Related party transactions

Related party transactions

9. Related party transactions

The Company, through PERC and the services segment, purchases engineering and technology support services from various companies with a minority shareholder in those companies who is also a minority shareholder of PERC. During the three months ended June 30, 2022 and 2021, the Company made total purchases of services from these companies of approximately $641,000 and $129,000, respectively, and approximately $1,480,000 and $285,000 during the six months ended June 30, 2022 and 2021, respectively. These total purchases are included in the Company’s cost of revenue in the accompanying condensed consolidated statements of income.

PERC has entered into a sublease agreement with one of these related companies that commenced on March 14, 2021 and ended August 31, 2021. This lease has been extended on a month-to-month basis subsequent to August 31, 2021. During the three months ended June 30, 2022 and 2021, the Company recognized approximately $24,000 and $24,000 of expense related to this lease, respectively, and approximately $48,000 and $29,000 during the six months ended June 30, 2022 and 2021, respectively. This lease amount is included in the Company's general and administrative expenses in the accompanying condensed consolidated statements of income.

The total amount of accounts payable outstanding to these companies as of June 30, 2022 and December 31, 2021, was approximately $767,000 and $164,000, respectively.