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Related Parties
 3 Months Ended
Mar. 31, 2023
Related Party Transactions [Abstract]  
Related Parties

Note 10. Related Parties

 

The following is a summary of assets, liabilities and income transactions with all related parties:

 

  

March 31,

2023

  

December 31,

2022

 
Due from related parties:          
Alutrafic Led SAS   290    249 
Studio Avanti SAS   236    113 
Due from other related parties   247    1,085 
Total due from related parties  $773   $1,447 
           
Due to related parties:          
Vidrio Andino   4,826    4,853 
Due to other related parties   664    470 
Total due to related parties  $5,491   $5,323 

 

   2023   2022 
   Three months ended March 31, 
   2023   2022 
Sales to related parties:          
Alutrafic Led SAS   173    300 
Studio Avanti SAS   156    168 
Sales to other related parties   4    58 
Sales to related parties  $333   $526 

 

 

A Construir SA

 

On a recurring basis, we have engaged A Construir S.A., a heavy construction company operating in Barranquilla, Colombia, to carry out construction related to our ongoing capital expenditures at our production facilities in Colombia. Affiliates of Jose Daes and Christian Daes, the company’s CEO and COO, respectively, had an ownership stake in A Construir through June 1, 2022. We purchased $3,280 during the three months ended March 31, 2023 from A Construir S.A. for construction and facilities which have been capitalized on the Company’s balance sheet as property, plant and equipment. Given that A Construir is no longer considered a related party, amounts since June 1, 2022, are not reflected as balances due from and due to related parties on the face of the Consolidated Balance Sheet nor the summary table above as of March 31, 2023 and December 31, 2022.

 

Alutrafic Led SAS

 

In the ordinary course of business, we sell products to Alutrafic Led SAS (“Alutrafic”), a fabricator of electrical lighting equipment. Affiliates of Jose Daes and Christian Daes have an ownership stake in Alutrafic. During the three months ended March 31, 2023, we sold $173, compared to $300 during the three months ended March 31, 2022. Additionally, we had outstanding accounts receivable from Alutrafic of $290 and $249 as March 31, 2023, and December 31, 2022, respectively.

 

Santa Maria del Mar SAS

 

In the ordinary course of business, we purchase fuel for use at our manufacturing facilities from Estación Santa Maria del Mar SAS, a gas station located in the vicinity of our manufacturing campus which is owned by affiliates of Jose Daes and Christian Daes. During the three months ended March 31, 2023, we purchased $236 of fuel, compared to $244 purchased during the three months ended March 31, 2022.

 

Fundacion Tecnoglass-ESWindows

 

Fundacion Tecnoglass-ESWindows is a non-profit organization set up by the Company to carry out social causes in the communities around where we operate. We made charitable contributions during the three months ended March 31, 2023 of $664, compared to $356 during the three months ended March 31, 2022.

 

Studio Avanti SAS

 

In the ordinary course of business, we sell products to Studio Avanti SAS (“Avanti”), a distributer and installer of architectural systems in Colombia. Avanti is owned and controlled by Alberto Velilla, who is director of Energy Holding Corporation, the controlling shareholder of the Company. As of March 31, 2023 and December 31, 2022, the Company had outstanding accounts receivable from Avanti of $236 and $113, respectively. During the three months ended March 31, 2023, we sold $156 of products to Studio Avanti, compared to $168 during the three months ended March 31, 2022, respectively.

 

Vidrio Andino Joint Venture

 

On May 3, 2019, we consummated a joint venture agreement with Saint-Gobain, a world leader in the production of float glass, a key component of our manufacturing process, whereby we acquired a 25.8% minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain. The purchase price for our interest in Vidrio Andino was $45,000, of which $34,100 was paid in cash and $10,900 paid through the contribution of land on December 9, 2020. On October 28, 2020, we acquired said land from a related party and paid for it with the issuance of an aggregate of 1,557,142 ordinary shares of the Company, valued at $7.00 per share, which represented an approximate 33% premium based on the closing stock price as of October 27, 2020.

 

The land will serve the purpose of developing a second float glass plant nearby our existing manufacturing facilities which we expect will carry significant efficiencies for us once it becomes operative, in which we will also have a 25.8% interest. The new plant will be funded with proceeds from the original cash contribution made by the Company, operating cashflows from the Bogota plant, debt incurred at the joint venture level that will not consolidate into the Company and an additional contribution by us of approximately $12,500 if needed (based on debt availability as a first option).

 

In the ordinary course of business, we purchased $6,345 and $5,093 from Vidrio Andino during the three months ended March 31, 2023, and 2022, respectively. We also had outstanding payables to Vidrio Andino of $4,826 and $4,853 as of March 31, 2023 and December 31, 2022, respectively. We recorded equity method income of $1,448 and $1,580 on our Consolidated Statement of Operations during the three months ended March 31, 2023 and 2022, respectively.

 

 

Zofracosta SA

 

We have an investment in Zofracosta SA, a real estate holding company and operator of a tax-free zone located in the vicinity of the proposed glass plant being built through our Vidrio Andino joint venture recorded at $657 and $632 as of March 31, 2023 and December 31, 2022, respectively. Affiliates of Jose Daes and Christian Daes have a majority ownership stake in Zofracosta SA.