19. Related Parties

HC2

In January 2015, the Company entered into a services agreement (the "Services Agreement") with Harbinger Capital Partners, a related party of the Company, with respect to the provision of services that may include providing office space and operational support and each party making available their respective employees to provide services as reasonably requested by the other party, subject to any limitations contained in applicable employment agreements and the terms of the Services Agreement. The Company recognized $1.0 million and $1.2 million of expenses under the Services Agreement for each of the three months ended September 30, 2018 and 2017, respectively. The Company recognized $2.9 million and $3.1 million of expenses under the Services Agreement for each of the nine months ended September 30, 2018 and 2017, respectively.

In June 2018, the Company funded $0.8 million to Harbinger Capital Partners for a deposit in connection with its allocable portion of shared office space occupied by the Company.

GMSL

In November 2017, GMSL acquired the trenching a cable lay services business from Fugro N.V. ("Fugro"). As part of the transaction, Fugro became a 23.6% holder of GMSL's parent, Global Marine Holdings, LLC ("GMH"). GMSL, in the normal course of business, incurred expenses with Fugro for various survey and other contractual services. For the three months ended September 30, 2018, GMSL recognized $3.0 million of expenses for such services with Fugro. For the nine months ended September 30, 2018, GMSL recognized $7.1 million of expenses for such services with Fugro.

As part of the Fugro trenching business acquisition in November 2017, GMSL issued to Fugro a $7.5 million secured loan, which bears interest, payable quarterly, at 4% per annum through January 11, 2018, and at 10% per annum thereafter, and matures 363 days following the acquisition. GMSL recognized interest expense on the note of $0.2 million for the three months ended September 30, 2018 and $0.6 million for the nine months ended September 30, 2018. In September 2018, GMSL repaid the note in full.

The parent company of GMSL, GMH, incurred management fees of $0.1 million for each of the three months ended September 30, 2018 and 2017, respectively, and $0.5 million for each of the nine months ended September 30, 2018 and 2017, respectively.

GMSL also has transactions with several of their equity method investees. A summary of transactions with such equity method investees and balances outstanding are as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net revenue	$	5,684	$	4,174	$	13,322	$	16,271
Operating expenses	$	340	$	1,258	$	1,378	$	6,089
Interest expense	$	310	$	351	$	996	$	1,047
Dividends	$	21,886	$	2,027	$	24,260	$	2,659



	September 30, 2018		December 31, 2017
Accounts receivable	$	5,138	$	8,654
Long-term obligations	$	30,015	$	35,289
Accounts payable	$	390	$	1,925

Life Sciences

In 2017, R2 issued secured convertible note of $1.5 million to a related party, Blossom Innovations, LLC. As of September 30, 2018, the note with Blossom Innovation, LLC had an outstanding balance of $1.0 million.