Related party transactions

12 Months Ended

Dec. 31, 2022

Related party transactions

Related party transactions

20. Related party transactions

The Company, through PERC and the services segment, purchases engineering and technology support services from various companies with a minority shareholder who is also a minority shareholder of PERC. During the years ended December 31, 2022 and 2021, the Company made total purchases of services of approximately $2,695,000 and $438,000 from these companies, respectively. These total purchases are included in the Company’s cost of revenue in the accompanying consolidated statements of income.

PERC has entered into a lease 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 years ended December 31, 2022 and 2021, the Company recognized approximately $97,000 and $77,000 of expense related to this lease, respectively. This lease expense is included in the Company's general and administrative expenses in the accompanying consolidated statements of income.

The total amount of accounts payable outstanding to these companies as of December 31, 2022 and 2021, was approximately $404,000 and $164,000, respectively.