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11. Related Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
11. Related Party Transactions

The Company owes Eric McAfee, the Company’s Chairman and CEO, and McAfee Capital LLC (“McAfee Capital”),, owned by Eric McAfee, $0.4 million in connection with employment agreements and expense reimbursements previously accrued as salaries expense and accrued liabilities. The balance accrued related to these employment agreements was $0.4 million as of June 30, 2019 and December 31, 2018. For the three months ended June 30, 2019 and 2018, the Company expensed $8 thousand and $10 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the six months ended June 30, 2019 and 2018, the Company expensed $21 thousand and $24 thousand, respectively, to reimburse actual expenses incurred by 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 June 30, 2019, $0.1 million remained as a prepaid expense.

 

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 $362 thousand and $400 thousand for guaranty fee remained as an accrued liability as of June 30, 2019 and December 31, 2018 respectively.

 

The Company owes various members of Board amounts totaling $1.2 million and $1.1 million as of June 30, 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 June 30, 2019 and 2018, the Company expensed $97 thousand and $88 thousand respectively, in connection with board compensation fees. For the six months ended June 30, 2019 and 2018, the Company expensed $198 thousand and $177 thousand respectively, in connection with board compensation fees.