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Note 16 - Related Party Transactions
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
16.
Related Party Transactions
 
The Company has entered into various leasing arrangements with a
not
-for-profit organization of which the Company's Chairman, Paul Lamb, serves as Chairman and a director but receives
no
compensation or any other financial benefit. A summary of the leasing arrangements is as follows:
 
Term
  
Square
Feet
    
Annual Rent
    
Total Commitment
(excluding renewal options)
    
Additional Commitment
(assumes two-year renewal option is exercised)
  
Jan 2019-Dec 2020
    
2,284
     $
19,414
     $
38,828
     $
38,828
  
Jan 2019-Dec 2020
    
1,817
    
-(a)
    
-(a)
    
-(a)
  
Jan 2019-Dec 2020
    
1,905
     $
16,193
     $
32,385
     $
32,385
  
 
(a)
In
February 2019,
the Company amended the square footage under the master lease with the
not
-for-profit originally entered into in
August 2016.
The Company understood that the tenant's main intent was to sublease the space to artists, on a short-term basis, after which such subtenant artists would transition into their own space leased directly from the Company. Under the master lease, the tenant has the right to sublease the space without prior written consent for use as an art studio, art school or related use. Under the terms of the master lease, rent is payable by the tenant only to the extent the space is sublet, at the rent amount per square foot payable by the subtenant up to a maximum of
$10
per square foot per year. The lease originally was for
2,130
square feet. The amended maximum annual and total lease commitment of up to
$18,170
and
$36,340,
respectively. Approximately
$3,500
in improvements were provided. Any space
not
subleased
may
be used by the tenant rent-free for certain stated art uses, although the tenant is responsible for certain passthrough expenses such as electric and heat. Since rent is only due if the space is sublet, the Company believes the fair value of the space to the extent
not
sublet reflects a below market lease over the term ending
December 31, 2020
of
$18,170
and total commitments including
two
-year renewal option of up to
$72,680.
 
In
December 2020,
the tenant exercised the
second
and last renewal term option, extending the lease terms until
December 31, 2022.
 
During the
twelve
months ended
December 31, 2020
and
2019,
respectively, the Company received rental revenue of
$35,607
and
$34,720,
respectively.
 
The independent members of the Board of the Company approved all of the leasing transaction described above.
 
The Chairman is also a partner of the firm Lamb & Barnosky, LLP that provided pro bono legal representation to the aforementioned
not
-for-profit corporation on the lease.