RELATED PARTY TRANSACTIONS
|9 Months Ended|
Sep. 30, 2015
|Related Party Transactions [Abstract]|
|Related Party Transactions Disclosure [Text Block]||
Accounts receivable related parties, net of $500,318 and $265,111 at September 30, 2015 and December 31, 2014, respectively, represents the net realizable value of advances made to related, but independent, entities under common management.
See Note 6 Investments and fair value of financial instruments, for information related to investments in related parties.
For three and nine months ended September 30, 2015, CAP recorded $238,517 of private equity and venture capital fees arising from private placement transactions on behalf of a related, but independent, entity under common management. Of this amount, $185,589 represent cash fees and $52,928 represent fees in the form of warrants, which were recorded at fair value as of the grant date using the Black-Scholes option pricing model. No similar fees were earned during the three and nine months ended September 30, 2014.
On April 1, 2010, the Company entered into an agreement with a related, but independent, entity under common management, to share expenses such as office space, support staff and other operating expenses. General and administrative expenses were reduced by $39,196 and $124,133 during the three and nine months ended September 30, 2015 and $45,927 and $131,523 during the three and nine months ended September 30, 2014, respectively.
The Company has an expense sharing agreement with a related, but independent entity to share expenses such as office space and other clerical services. The owners of more than 5% of that entity include (i) AWLD’s chairman, and (ii) a more than 5% owner of AWLD. The entity owed $401,482 and $389,512 to the Company under the expense sharing agreement as of September 30, 2015 and December 31, 2014, respectively, of which $347,000 and $289,000, respectively, is deemed unrecoverable and written off.
An investor and a greater than 5% stockholder of the Company is affiliated with a company that imports wines for AWE to the United States.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef