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10. Related Party Transactions
9 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
10. 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 September 30, 2020 and December 31, 2019. For the three months ended September 30, 2020 and 2019, the Company expensed $7 thousand and $1 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the nine months ended September 30, 2020 and 2019, the Company expensed $7 and $22 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 September 30, 2020, $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 annually in consideration to McAfee Capital in exchange for its willingness to provide the guaranties. On May 7, 2020 the Audit Committee of the Company approved a guarantee fee of 0.4% on the outstanding balance of Third Eye Capital Notes annually. Based on this approval, we accrued $0.5 million in guarantee fee as of September 30, 2020. The balance of $627 thousand and $304 thousand for guaranty fee remained as an accrued liability as of September 30, 2020 and December 31, 2019 respectively.

 

The Company owes various members of the Board amounts totaling $1.2 million as of September 30, 2020 and December 31, 2019, for each period, in connection with board compensation fees, which are included in accounts payable on the balance sheet. For the three months ended September 30, 2020 and 2019, the Company expensed $94 thousand and $96 thousand respectively, in connection with board compensation fees. For the nine months ended September 30, 2020 and 2019, the Company expensed $256 thousand and $294 thousand respectively, in connection with board compensation fees.