Quarterly report pursuant to Section 13 or 15(d)

26. Related Party

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26. Related Party
9 Months Ended
Sep. 29, 2018
Related Party Transactions [Abstract]  
Related Party

Note 26:          Related Parties

 

Tony Isaac, the Company’s Chief Executive Officer, is the father of Jon Isaac, Chief Executive Officer of Live Ventures Incorporated and managing member of Isaac Capital Group LLC, a 9% shareholder of the Company. Tony Isaac, Chief Executive Officer, Virland Johnson, Chief Financial Officer, Richard Butler, Board of Directors member, and Dennis Gao, Board of Directors member of the Company, are Board of Directors, Chief Financial Officer, Board of Directors member, and Board of Directors members of, respectively, Live Ventures Incorporated. The Company also shares certain executive and legal services with Live Ventures Incorporated. The total services were $79 and $18 for the 13 weeks ended September 29, 2018 and September 30, 2017, respectively. The total services were $195 and $18 for the 39 weeks ended September 29, 2018 and September 30, 2017, respectively. Customer Connexx rents approximately 9,879 square feet of office space from Live Ventures Incorporated at its Las Vegas, NV office. The total rent and common area expense was $50 and $42 for the 13 weeks ended September 29, 2018 and September 30, 2017, respectively. The total rent and common area expense was $136 and $135 for the 39 weeks ended September 29, 2018 and September 30, 2017, respectively. The Company received a transition services fee of $68 and $203 from ApplianceSmart for the 13 weeks and 39 weeks ended September 29, 2018.

 

On December 30, 2017, the Purchaser (“ApplianceSmart Affiliated Holdings LLC, a wholly-owned subsidiary of Live Ventures Incorporated”), entered into the Agreement with the Company and ApplianceSmart. Pursuant to the Agreement, the Purchaser purchased from the Company all the issued and outstanding shares stock of ApplianceSmart in exchange for the Purchase Price. Effective April 1, 2018, Purchaser issued the Company a promissory note with a 3 term in the original principal amount of $3,919,494 (exact amount) for the balance of the purchase price. ApplianceSmart is guaranteeing the repayment of this promissory note. See Note 7.