Quarterly report pursuant to Section 13 or 15(d)

Notes Payable to Former Stockholders

v3.7.0.1
Notes Payable to Former Stockholders
6 Months Ended
Jun. 30, 2017
Payables and Accruals [Abstract]  
Notes Payable to Former Stockholders
5. 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. During each of the six months ended June 30, 2017 and 2016, the Company made total payments on the Notes of $1.5 million, including principal and interest.

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):

 

     June 30,
2017
     December 31,
2016
 

Accrued interest

   $ 86      $ 337  
  

 

 

    

 

 

 

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

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2017      2016      2017      2016  

Interest expense

   $ 113      $ 126      $ 235      $ 259