Related Party Transactions |
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| Related Party Transactions |
NOTE 9. RELATED PARTY TRANSACTIONS
Guarantees/Related Party Advances
The Chief Executive Officer (“CEO”) provided cash advances witnessed by interest-bearing notes totaling $438 and $536, as of March 31, 2018 and December 31, 2017, respectively. Additionally, the CEO provided a personal credit card account for the purchase of goods and services by FTE. While the credit card balances are reflected in the Company’s books and records, the CEO is personally liable for the payment of the entire amount of the open credit obligation, which was $14 and $12 as of March 31, 2018 and December 31, 2017, respectively.
Additionally, the Company entered into several secured equipment financing arrangements with total obligations of approximately $117 and $345 as of March 31, 2018 and December 31, 2017, respectively that required the guaranty of a Company officer, which was provided by him.
The Chief Financial Officer (“CFO”) provided an unsecured, interest-bearing note totaling $150 during the year ended December 31, 2017. The balance on the note was $50 and $80 as of March 31, 2018 and December 31, 2017, respectively. Additionally, the CFO personally guaranteed several secured equipment financing arrangements with total obligations of approximately $351 and $562 at the three months ended March 31, 2018 and the year ended December 31, 2017, respectively.
The CFO also provides a personal credit card account for the purchase of goods and services by FTE. While the credit card balances are reflected in the Company’s books and records, the CFO is personally liable for the payment of the entire amount of the open credit obligation, which was $15 and $14 at March 31, 2018 and December 31, 2017, respectively.
Mr. Chris Ferguson, a member of the Board of Directors, has provided cash advances totaling $147 as of March 31, 2018 and December 31, 2017.
Benchmark Acquisition
On April 20, 2017, the Company issued Series B Notes in the aggregate principal amount of $30,000 to the former owners of Benchmark and significant shareholders of the Company, which mature on April 20, 2020. Interest is computed at the rate of 3% per annum on the outstanding principal. Interest expense was $222 for the three months ended March 31, 2018 and accrued interest expense was approximately $850 and $634 as of March 31, 2018 and December 31, 2017, respectively.
On April 20, 2017, the Company issued Series C Notes in the aggregate principal amount of $7,500 to the former owners of Benchmark and significant shareholders of the Company, which mature on October 20, 2018. Interest computes at the rate of 3% per annum on the outstanding principal. Interest expense was $51 for the three months ended March 31, 2018 and accrued interest expense was approximately $203 and $153 as of March 31, 2018 and December 31, 2017, respectively.
Related party notes related to the acquisition consisted of the following:
Total related party notes consisted of the following:
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