Certain services are provided to the Company under a Transition Services Agreement (“TSA”) between MMC and the Company. The TSA is intended to provide certain services until the Company acquires the services separately. Under the TSA, the Company incurred net costs during the three months ended September 30, 2019 and 2018 of $21,000 and $20,000, respectively, and during the nine months ended September 30, 2019 and 2018 of $96,000 and $147,000, respectively. These amounts are included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income.

MMC has wholly or majority owned subsidiaries that buy and sell commercial real estate properties. The Company performs certain brokerage and financing services related to transactions of the subsidiaries of MMC. For the three months ended September 30, 2019 and 2018, the Company earned real estate brokerage commissions and financing fees of $1.2 million and $1.8 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $688,000 and $1.1 million, respectively, related to these revenues. For the nine months ended September 30, 2019 and 2018, the Company earned real estate brokerage commissions and financing fees of $4.0 million and $4.9 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $2.3 million and $2.9 million, respectively, related to these revenues.

The Company has an operating lease with MMC for a single-story office building located in Palo Alto, California, which expires on May 31, 2022. The related operating lease cost for the three months ended September 30, 2019 and 2018 was $333,000 and $257,000, respectively, and for the nine months ended September 30, 2019 and 2018 was $999,000 and $765,000, respectively. Operating lease cost is included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. See Note 4 – “Operating Leases” for additional information.

As of September 30, 2019 and December 31, 2018, accounts payable and other liabilities with MMC totaling $93,000 and $101,000, respectively, remain unpaid and are included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

non-executive

time-to-time.

non-current),

Co-Chairman,