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Related Party Transactions
12 Months Ended
Dec. 31, 2015
Related Party Transactions
Note 10—Related Party Transactions
 
A director of the Company is a partner in a law firm that acts as counsel to the Company. The Company incurred legal fees and expenses to the law firm in the amount of approximately $3.0 million in 2013, $2.4 million in 2014 and $3.1 million in 2015. As of December 31, 2014 and 2015, legal fees and reimbursable expenses of $0.6 million and $1.6 million, respectively, were payable to this law firm.
 
The owner of Nantworks, the Company’s DreamPlay Toys joint venture partner, beneficially owns 25.2% of the Company’s outstanding common stock, which includes 1.5 million shares underlying out-of-the-money stock warrants. Pursuant to the joint venture agreements, the Company is obligated to pay Nantworks a preferred return on joint venture sales.
 
For the years ended December 31, 2013, 2014 and 2015, preferred returns of $188,000, $821,939 and $718,767, respectively, were earned and payable to Nantworks. Pursuant to the amended Toy Services Agreement, Nantworks is entitled to receive a renewal fee in the amount $1.2 million payable in installments of $0.8 million paid on the effective date of the renewal in 2015 and $0.2 million on or before each of August 1, 2016 and 2017. As of December 31, 2014 and 2015, the Company has a receivable from Nantworks in the amount of $0.6 million and $0.6 million, respectively. In addition, the Company previously leased office space from Nantworks. Rent expense, including common area maintenance and parking, for the years ended December 31, 2013, 2014 and 2015 was $0.8 million, $1.3 million and $0.1 million, respectively.