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Related Party Transactions
 6 Months Ended
Jun. 30, 2022
Related Party Transactions  
Related Party Transactions

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 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, 2022, $0.1 million remained as a prepaid expense.

 

On November 4, 2021, the Audit Committee of the Company approved a guarantee fee of $0.4 million to Mr. McAfee. The balance of $0.1 million and $0.3 million, for guaranty fees, remained as an accrued liability as of June 30, 2022 and December 31, 2021, respectively. On January 12, 2022, the Audit Committee of the Company approved a one-time guarantee fee of $2.0 million to McAfee Capital in connection with McAfee Capital’s extension of certain guarantees of the Company’s indebtedness with Third Eye Capital. The Company paid this fee by issuing 180,000 shares of common stock of the Company.

 

The Company owes various members of the Board amounts totaling $0.2 million as of June 30, 2022 and December 31, 2021, for each period, in connection with board compensation fees, which are included in accounts payable on the balance sheet. For the three months ended June 30, 2022 and 2021, the Company expensed $0.1 million respectively, in connection with board compensation fees. For the six months ended June 30, 2022 and 2021, the Company expensed $0.2 million during each period, in connection with board compensation fees.