Related Party Transactions
|3 Months Ended|
Mar. 31, 2017
|Related Party Transactions [Abstract]|
|Related Party Transactions||
10. RELATED PARTY TRANSACTIONS
Accounts receivable – related parties, net of $503,471 and $493,531 at March 31, 2017 and December 31, 2016, respectively, represents the net realizable value of advances made to related, but independent, entities under common management, of which $466,129 and $372,456 respectively, represents amounts owed to the Company in connection with expense sharing agreements as described below.
See Note 6 – Investments and Fair Value of Financial Instruments, for information related to investments in related parties.
On April 1, 2010, the Company entered into an agreement with a related entity of which AWLD’s CEO is Chairman and Chief Executive Officer, and AWLD’s CFO is an executive officer, to share expenses such as office space, support staff and other operating expenses. The Company is entitled to receive reimbursement of $58,683 and $39,196 for expenses incurred during the three months ended March 31, 2017 and 2016, respectively, pursuant to this agreement. The entity owed $455,073 and $363,389, respectively, as of March 31, 2017 and December 31, 2016, under such and similar prior agreements. The amount owed to the Company at March 31, 2017, will be repaid through October 1, 2018, pursuant to a repayment schedule agreed upon by the Company and the related entity on March 24, 2017.
The Company has an expense sharing agreement with a related 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 Company was entitled to receive reimbursement of $3,990 and $3,990 for expenses during the three months ended March 31, 2017 and 2016, respectively, pursuant to this agreement. The entity owed $400,057 and $396,067 to the Company under the expense sharing agreement as of March 31, 2017 and December 31, 2016, respectively, of which $389,000 and $387,000, respectively, is deemed unrecoverable and reserved.
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