Related Party Transactions
|6 Months Ended|
Jun. 30, 2018
|Related Party Transactions [Abstract]|
|Related Party Transactions||
Accounts receivable – related parties of $199,169 and $851,016 at June 30, 2018 and December 31, 2017, respectively, represents the net realizable value of advances made to related, but independent, entities under common management, of which $155,420 and $724,591 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 $69,829 and $139,659 for expenses incurred during the three and six months ended June 30, 2018, respectively and $73,672 and $132,355 for expenses incurred during the three and six months ended June 30, 2017, respectively, pursuant to this agreement. The entity owed $155,420 and $724,591, respectively, as of June 30, 2018 and December 31, 2017, under this agreement. The amount owed to the Company is being repaid in installments through October 1, 2018, pursuant to a repayment schedule agreed upon by the Company and the related entity on March 24, 2017.
The Company also had an expense sharing agreement with a different related entity to share expenses such as office space and other clerical services, which was terminated on August 2017. 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 $7,980 for expenses during the three and six months ended June 30, 2017, pursuant to this agreement. The entity owed $396,116 to the Company under the expense sharing agreement as of June 30, 2018 and December 31, 2017, of which the entire balance 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://fasb.org/us-gaap/role/ref/legacyRef