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Related Parties
 6 Months Ended
Jun. 30, 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:

 

Schedule of Related Parties

  

June 30,

2022

  

December 31,

2022

 
Due from related parties:          
Alutrafic Led SAS   395    249 
Studio Avanti SAS   345    113 
Due from other related parties   876    1,085 
Total due from related parties  $1,616   $1,447 
           
Due to related parties:          
Vidrio Andino   5,185    4,853 
Due to other related parties   1,091    470 
Total due to related parties  $6,276   $5,323 

 

   2023   2022   2023   2022 
   Three months ended   Six months ended 
   June 30,   June 30, 
   2023   2022   2023   2022 
Sales to related parties:                    
Alutrafic Led SAS   192    270    365    570 
Studio Avanti SAS   129    164    285    332 
Sales to other related parties   171    33    175    91 
Sales to related parties  $492   $467   $825   $993 

 

 

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 and six months ended June 30, 2023, we sold $192 and $365 to Alutrafic, respectively, compared to $270 and $570 during the three and six months ended June 30, 2022, respectively. Additionally, we had outstanding accounts receivable from Alutrafic for $395 and $249 as of June 30, 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 and six months ended June 30, 2023, we purchased $469 and $705, respectively, compared to $168 and $412 purchased during the three and six months ended June 30, 2022, respectively.

 

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 and six months ended June 30, 2023, for $869 and $1,533, respectively, compared to $439 and $795 during the three and six months ended June 30, 2022, respectively.

 

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 June 30, 2023, and December 31, 2022, the Company had outstanding accounts receivable from Avanti of $345 and $113, respectively. During the three and six months ended June 30, 2023, we sold $129 and $285 of products to Studio Avanti respectively, compared to $164 and $332 during the three and six months ended June 30, 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 million, of which $34.1 million was paid in cash and $10.9 million 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 $12.5 million if needed (based on debt availability as a first option).

 

In the ordinary course of business, we purchased $7,612 and $13,957 from Vidrio Andino during the three and six months ended June 30, 2023, respectively, compared to $3,948 and $9,041, during the three and six months ended June 30, 2022, respectively. We also had outstanding payables to Vidrio Andino for $5,185 and $4,853 as of June 30, 2023, and December 31, 2022, respectively. We recorded equity method income of $1,120 and $2,568 on our Consolidated Statement of Operations during the three and six months ended June 30, 2023, respectively, compared to $1,669 and $3,249 recorded during the three and six months ended June 30, 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 $726 and $632 as of June 30, 2023, and December 31, 2022, respectively. Affiliates of Jose Daes and Christian Daes have a majority ownership stake in Zofracosta SA.