RELATED PARTY TRANSACTIONS |
9 Months Ended | ||||
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Sep. 30, 2015 | |||||
| Related Party Transactions [Abstract] | |||||
| Related Party Transactions Disclosure [Text Block] |
Receivables
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.
Investments
See Note 6 – Investments and fair value of financial instruments, for information related to investments in related parties.
Revenues
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.
Expense Sharing
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.
Other Relationships
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.
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