RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2017

(14) RELATED PARTY TRANSACTIONS

The Company employs Mr. Martin Sandgaard and Mr. Joachim Sandgaard, both sons of Thomas Sandgaard. Compensation for 2017 and 2016 totaled $0.2 million and $0.1 million, respectively. To meet Mr. Sandgaard’s obligation to his former wife under a settlement agreement, the Company, during the fourth quarter of 2015, entered into 3 year employment arrangement totaling $100,000 per year with Mr. Joachim Sandgaard.

Related party payables primarily consist of advances made to the Company and inventory purchases made on behalf of the Company. Accrued liabilities as of December 31, 2016 included a net payable to Thomas Sandgaard and an employee of $0.2 million. During the year ended December 31, 2017 the Company made a repayment to Thomas Sandgaard and an employee of $0.1 million each. Accrued liabilities related to net payables for Thomas Sandgaard and an employee were $0 as of December 31, 2017.