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Related Party Transactions
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

Note 10 – Related Party Transactions

 

The Company sells products to companies affiliated with Peter G. Dornau, who is the Company’s Chairman, President and Chief Executive Officer. The affiliated companies resell, outside of the United States and Canada, products they purchase from the Company. The Company also provides administrative services to these companies and pays certain business-related expenditures for the affiliated companies, for which the Company is reimbursed. Sales to the affiliated companies aggregated approximately $2,373,000 and $2,212,000 for the years ended December 31, 2021 and 2020, respectively; fees for administrative services aggregated approximately $841,000 and $871,000, respectively, for such years; and amounts billed to the affiliated companies to reimburse the Company for business related expenditures made on behalf of the affiliated companies aggregated approximately $123,000 and $199,000 during the years ended December 31, 2021 and 2020, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales, administrative services and business-related expenditures aggregating approximately $1,212,000 and $1,496,000 at December 31, 2021 and 2020, respectively.

 

An entity that is owned by the Company’s Chairman, President and Chief Executive Officer provides several services to the Company. Under this arrangement, the Company paid the entity an aggregate of approximately $85,000 ($48,000 for research and development, $32,000 for charter boat services that the Company used to provide sales incentives for customers and $5,000 for the production of television commercials) and $77,000 ($48,000 for research and development, $9,000 for charter boat services that the Company used to provide sales incentives for customers, and $20,000 for the production of television commercials) for the years ended December 31, 2021 and 2020, respectively. Expenditures for the research and development services are included in the consolidated statements of operations within selling and administrative expenses. Expenditures for the charter boat services and television production services are included in the consolidated statements of operations within advertising and promotion expenses.

 

The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. See Note 4 for a description of the lease terms.

 

A director of the Company is Regional Executive Vice President of an insurance broker through which the Company sources most of its insurance needs. During the years ended December 31, 2021 and 2020, the Company paid an aggregate of approximately $1,933,000 and $1,365,000, respectively, in insurance premiums on policies obtained through the insurance broker.