Quarterly report pursuant to Section 13 or 15(d)

Notes Payable to Former Stockholders

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Notes Payable to Former Stockholders
3 Months Ended
Mar. 31, 2018
Payables and Accruals [Abstract]  
Notes Payable to Former Stockholders
6. Notes Payable to Former Stockholders

In conjunction with the Spin-Off and IPO, notes payable to certain former stockholders of MMREIS were issued in settlement of restricted stock and SARs awards that were redeemed by MMREIS upon the termination of employment by the former stockholders (“the Notes”). Such Notes had been previously assumed by MMC, and were transferred to the Company. The Notes are unsecured and bear interest at 5% with annual principal and interest installments with a final principal payment due during the second quarter of 2020.

 

Accrued interest included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets pertaining to the Notes consisted of the following (in thousands):

 

     March 31,
2018
     December 31,
2017
 

Accrued interest

   $ 415      $ 305  
  

 

 

    

 

 

 

Interest expense pertaining to the Notes consisted of the following (in thousands):

 

     Three Months Ended
March 31,
 
     2018      2017  

Interest expense

   $ 109      $ 122