Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company provides cloud-managed video services (the “Video Services”) to a company in which one of our directors is an officer. Management believes that such transactions contain terms that would have been obtained from unaffiliated third parties. Related party Video Services revenue for the nine months ended September 30, 2012 and 2011 were $168,000 and $230,000, respectively, and for the three months ended September 30, 2012 and 2011 were $43,000 and $69,000, respectively. As of September 30, 2012, the accounts receivable for this company was $36,000.

The Company receives general corporate strategy and management consulting services from a consultant who is a director of Glowpoint. The Consulting Agreement was entered into as of September 1, 2010 and is a month-to-month engagement. The Company pays this individual director $12,500 per month, plus any pre-authorized expenses incurred in providing services, under the Consulting Agreement. Management believes that such transaction contain terms that would have been obtained from unaffiliated third parties. Related party consulting fees for the nine months ended September 30, 2012 and 2011 were $112,500 and for the three months ended September 30, 2012 and 2011 were $37,500. As of September 30, 2012, the accounts payable for this firm was $12,500.

In addition, the Company receives financial advisory services from a firm in which one of the principals is a shareholder of Glowpoint. Management believes that such transactions contain terms that would have been obtained from unaffiliated third parties. Related party financial advisory fees for the nine months ended September 30, 2012 and 2011 were $233,000 and $108,000, respectively, and for the three months ended September 30, 2012 and 2011 were $161,000 and $36,000, respectively. As of September 30, 2012, there was $0 accounts payable for this firm.