Related-Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2022 | |||
| Related Party Transactions [Abstract] | |||
| 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 six months ended June 30, 2022 and 2021 of ( $18,000) and ($4,000), respectively. These amounts are included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. 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 three months ended June 30, 2022 and 2021, the Company earned real estate brokerage commissions and financing fees of $912,000 and $337,000, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $547,000 and $203,000, respectively, related to these revenues. For the six months ended June 30, 2022 and 2021, the Company earned real estate brokerage commissions and financing fees of $2,510,000 and $794,000, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $1,501,000 and $477,000, respectively, related to these revenues. Operating Lease with MMC The Company extended its operating lease with MMC for a single-story office building located in Palo Alto, California, which now expires in . The related operating lease cost was $320,000 and $332,000 for the three months ended June 30, 2022 and 2021, respectively, and $653,000 and $665,000 for the six months ended June 30, 2022 and 2021, respectively. Operating lease cost is included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. Accounts Payable and Accrued Expenses with MMC As of June 30, 2022 and December 31, 2021, the Company owed MMC $11,000 and $93,000,
respectively. These amounts are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets. Other The Company makes advances to non-executive employees from time-to-time. non-current) in the accompanying condensed consolidated balance sheets. See Note 5 – “Selected Balance Sheet Data” for additional information. As of June 30, 2022, George M. Marcus, the Company’s founder and Chairman, beneficially owned approximately 38% o
f the Company’s issued and outstanding common stock, including shares owned by Phoenix Investments Holdings, LLC and the Marcus Family Foundation II. |