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11. Related Party Transactions
3 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
11. Related Party Transactions

The Company owes Eric McAfee, the Company’s Chairman and CEO, and McAfee Capital, owned by Eric McAfee, $0.4 million in connection with employment agreements and expense reimbursements previously accrued as salaries expense and currently held as an accrued liability. The balance accrued related to these employment agreements was $0.4 million as of March 31, 2019 and December 31, 2018. For the three months ended March 31, 2019 and 2018, the Company expensed $13 thousand and $9 thousand, respectively, to reimburse actual expenses incurred for McAfee Capital and related entities. The Company previously prepaid $0.2 million to Redwood Capital, a company controlled by Eric McAfee, for the Company’s use of flight time on a corporate jet. As of March 31, 2019, $0.1 million remained as a prepaid expense related to Redwood Capital.

 

As consideration for the reaffirmation of guaranties required by Amendment No. 13 and 14 to the Note Purchase Agreement which the Company entered into with Third Eye Capital on March 1, 2017 and March 27, 2018 respectively, the Company also agreed to pay $0.2 million for each year in consideration to McAfee Capital in exchange for their willingness to provide the guaranties. The balance of $380 thousand and $400 thousand for guaranty fee remained as an accrued liability as of March 31, 2019 and December 31, 2018 respectively.

 

The Company owes various Board Members amounts totaling $1.2 million and $1.1 million as of March 31, 2019 and December 31, 2018, respectively, in connection with board compensation fees, which are included in accounts payable on the balance sheet. For the three months ended March 31, 2019 and 2018, the Company expensed $101 thousand and $89 thousand respectively, in connection with board compensation fees.