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Related Party Transactions | (10) Related Party Transactions Related Party Debt As of March 31, 2023, the Company had KRW 5.0 billion ($3.8 million USD) outstanding of the related party borrowing from DNI. See Note 7 Debt for additional information about the Company’s related party debt. The following table sets forth payment guarantees of the Company's obligations as of March 31, 2023 that have been provided by Dasan Networks, Inc. ("DNI"). DNI owns approximately 29.2% of the outstanding shares of the Company's common stock. The amount guaranteed exceeds the principal amounts of outstanding obligations due to collateral requirements by the banks.
Other Related Party Transactions Sales, cost of revenue, operating expense, interest expense and other expenses to and from related parties were as follows (in thousands) for the three months ended March 31, 2023 and 2022:
The Company has entered into sales agreements with DNI to sell certain services and finished goods produced by the Company. The Company also has an agreement with DNI in which DNI acts as a sales channel to third party customers. The above transactions are included in sales and cost of revenue on the unaudited condensed consolidated statement of comprehensive income (loss). Sales to DNI are recorded net of royalty fees for a sales channel arrangement. DNS Korea has a lease agreement with DNI related to the lease of a warehouse facility. Operating lease cost related to the DNI lease totaled $0.1 million for the three months ended March 31, 2023. Operating lease cost related to the DNI leases totaled $0.2 million for the three months ended March 31, 2022. Operating lease expense is allocated between cost of revenue, research and product development, and selling, marketing, general and administrative expenses on the unaudited condensed consolidated statement of comprehensive income (loss). As of March 31, 2023, the right-of-use asset and operating lease liability related to DNI leases were $1.6 million. As of December 31, 2022, the right-of-use asset and operating lease liability related to DNI leases were $1.7 million. The Company also pays a license fee under the Trademark License Agreement with DNI. The license fee is calculated as 0.4% of DNS Korea annual sales. For the three months ended March 31, 2023, license related expense were $0.2 million. For the three months ended March 31, 2022, license related expense were $0.1 million. License related expense are included in selling, marketing, general and administrative expenses on the consolidated statements of comprehensive income (loss). Interest expense represents interest paid to DNI for the related party debt. Interest due to DNI was included in accrued and other liabilities on the unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2022. See Note 7 Debt for additional information about the Company’s related party debt. Other expenses represent charges from DNI for its payment guarantees relating to the Company's obligations. The Company pays DNI a guarantee fee which is calculated as 0.9% per annum of the guaranteed amount. Refer to the table above for further information about obligations guaranteed by DNI. Balances of Receivables and Payables with Related Parties Balances of receivables and payables arising from sales and purchases of goods and services with related parties as of March 31, 2023 and December 31, 2022 were included in the following balance sheet captions on the unaudited condensed consolidated balance sheets, as follows (in thousands):
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