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Related Party Transactions
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Line Items]  
Related Party Transactions Disclosure [Text Block]

Note 12 – Related Party Transactions

 

The Company has the following related party transactions:

 

As of June 30, 2024, Unilumin owns 51.8% of the Company’s Common Stock and beneficially owns 53.5% of the Company’s Common Stock. Nicholas J. Fazio, Jie Feng and Yantao Yu, each directors of the Company, are each directors and/or officers of Unilumin. Mr. Fazio and Mr. Yu are both executive officers of the Company and are receiving per annum compensation of $125,000 and $26,000, respectively, since January 1, 2023. They also continue to receive some compensation directly from Unilumin. The Company purchased $722,000 and $1.1 million of product from Unilumin in the six months ended June 30, 2024 and 2023, respectively. The Company purchased $484,000 and $587,000 of product from Unilumin in the three months ended June 30, 2024 and 2023, respectively. Beginning January 1, 2023, the Company has accrued interest payable to Unilumin based on the Company’s accounts payable to Unilumin. The total amount payable by the Company to Unilumin, including accounts payable, accrued interest and long-term debt, was $10.9 million and $10.0 million as of June 30, 2024 and December 31, 2023, respectively. In connection with the Unilumin Guarantee in the Contract Manufacturing Agreement with Craftsmen Industries Inc. in June 2020, the Company issued Warrants to purchase 500,000 shares of the Company’s Common Stock to Unilumin USA at an exercise price of $1.00 per share (see Note 10), which Warrants expired in June 2024. The Company occupies space in a New York office that is leased by Unilumin at no cost.

 

Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle. The total amount payable by the Company to Carlisle, including accrued interest and long-term debt, was $1.8 million and $1.7 million as of June 30, 2024 and December 31, 2023, respectively.