| Schedule of Related Party Balances and Transactions |
A summary of balances due to and from related parties, and transactions with related parties are as follows: | | | | | | | | | | | | | | Balances at Period End (in thousands) | | June 30,
2024 | | December 31,
2023 | Amounts payable to related party 1 | | $ | 41 | | | $ | 42 | | Amounts receivable from related party 2 | | 59 | | | 43 | | Loan receivable from related party 3 | | 101 | | | 83 | | Note payable to related party 4 | | 203 | | | 201 | | Rent payable to related parties and an affiliate associated with these related parties and an employee5 | | 1,212 | | | 1,284 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | Transactions with Related Parties (in thousands) | | 2024 | | 2023 | | 2024 | | 2023 | | Interest income on loan receivable from related party 3 | | $ | 18 | | | $ | — | | | $ | 36 | | | $ | — | | | Interest expense on note payable to related party 4 | | 1 | | | — | | | 2 | | | — | | | Lease expense 5 | | 159 | | | 55 | | | 318 | | | 110 | | |
_________________________ | | | | | | 1 | As of June 30, 2024 and December 31, 2023, Interep owes a travel credit of $41 thousand to Asi Ginio, a member of the Board of Directors. In connection with the Interep Acquisition, the Company has agreed to provide Mr. Ginio the travel credit in exchange for the general advisory services Mr. Ginio provided to the former owners of Interep. | 2 | Pursuant to a Universal Air Travel Plan (“UATP”) Servicing Agreement dated May 11, 2021, the Company sold certain airline tickets using prepaid UATP credit cards arranged by Mondee Group, LLC (“Mondee Group”), in exchange for a service fee equal to 10.0% of the revenue derived from the sale of such airline tickets. Mondee Group is owned by the Company’s CEO, Prasad Gundumogula, and is not a wholly-owned subsidiary of the Company. Mondee Group led the fundraising and arranged the funds that were used to purchase prepaid UATP credit cards at a discount from their face value from a certain airline. | 3 | In July 2023, the Company provided financing of $0.1 million to its Chief Financial Officer (“CFO”) as part of his relocation package. The promissory note bears an annual interest rate of 3.3% per annum and matures at the earlier of April 2026 or when the CFO's employment with the Company terminates. All outstanding principal, inclusive of any accrued and unpaid interest, is slated for settlement upon maturity of the note. The Company has the option to forgive the obligation in one-third increments which is contingent upon the absence of any breach of the CFO's obligations with the Company and his continued service. | 4 | The Company has a note payable to the CEO amounting to $0.2 million and $0.2 million as of June 30, 2024 and December 31, 2023, respectively. The loan is collateralized and carries an interest rate of 2.0% per annum. Principal and interest are due on demand. | 5 | The Company currently leases office space from Metaminds Software, a Company that the CEO co-owns with his wife. The lease commencement date for this lease was April 1, 2022. The lease had an original lease term of 11 months, and has been renewed, and the monthly minimum base rent is immaterial. From August 2023, the Company started leasing office spaces from certain employees and entities associated with these employees. These leases were recognized on the Skypass Closing Date and have 3.0 year terms. The monthly minimum base rent is immaterial. |
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