Related-Party Transactions |
12 Months Ended |
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Dec. 31, 2022 | |
| Related Party Transactions [Abstract] | |
| Related-Party Transactions |
8. Related-Party Transactions
Shared and Transition Services
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 these services separately. Under the TSA, the Company incurred net costs (charge-back) during the years ended December 31, 2022, 2021, and 2020 of $(64,000), $(12,000) and $68,000, respectively. These amounts are included in selling, general and administrative expense in the accompanying consolidated statements of operations.
Brokerage and Financing Services with the Subsidiaries of MMC
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 years ended December 31, 2022, 2021, and 2020, the Company earned real estate brokerage commissions and financing fees of $3.6 million, $2.4 million, and $2.9 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $2.4 million, $1.4 million, and $1.7 million, respectively, related to these revenue.
Operating Lease with MMC
The Company has an operating lease with MMC for a single-story office building located in Palo Alto, California, which expires in May 2032. The related operating lease cost was $1.3 million for each of the years ended December 31, 2022, 2021, and 2020, respectively. Operating lease cost is included in selling, general and administrative expense in the accompanying consolidated statements of operations. See Note 4 – “Operating Leases” for additional information.
Accounts Payable and Other Liabilities with MMC
As of December 31, 2022 and 2021, accounts payable and accrued expenses with MMC aggregating $79,000 and $93,000, respectively, remain unpaid and are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets.
Other
The Company makes advances to non-executive employees from time-to-time. At December 31, 2022 and 2021, the aggregate principal amount for employee notes receivable was $4,000 and $40,000, respectively, which is included in other assets (current and non-current) in the accompanying consolidated balance sheets. See Note 7 – “Selected Balance Sheet Data” for additional information. As of December 31, 2022, George M. Marcus, the Company’s founder and Chairman, beneficially owned approximately 38% of the Company’s issued and outstanding common stock, including shares owned by Phoenix Investments Holdings, LLC and the Marcus Family Foundation II.
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