5. RELATED PARTY TRANSACTIONS
|9 Months Ended|
Sep. 30, 2016
|Related Party Transactions [Abstract]|
|5. RELATED PARTY TRANSACTIONS||
The Company leases an office building and equipment from an entity owned by related parties on a month-to-month basis of which terms were amended by the Company’s Board of Directors in June 2016. Rent expense amounted to $48,000 and $24,112 for the three months ended September 30, 2016 and 2015, respectively, and $144,000 and $72,336 for the nine months ended September 30, 2016 and 2015, respectively. The Company also reimburses its landlord for office and building related (common area) expenses, equipment and certain other operational expenses, which have been insignificant to the condensed consolidated financial statements for the nine months ended September 30, 2016 and 2015. The Company maintains deposits and other accounts at a bank which was less than 5%-owned by related parties through January 2016, and where a stockholder and Company director was previously a member of the bank’s board of directors through January 2016, and is now a member of its Corporate Advisory Council.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef