Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company provides cloud and managed video services (the “Video Services”) to ABM Industries, Inc. ("ABM"). James S. Lusk, who serves on the Board of Directors of the Company, is an officer of ABM. Video Services revenue from ABM for the six months ended June 30, 2013 and 2012 were $70,000 and $125,000, respectively, and for the three months ended June 30, 2013 and 2012 were $33,000 and $59,000, respectively. As of June 30, 2013, the accounts receivable attributable to ABM was $24,000.

The Company receives general corporate strategy and management consulting services from Jon A. DeLuca, who serves on the Board of Directors for the Company. The Consulting Agreement was entered into as of September 1, 2010 and is a month-to-month engagement. The Company pays Mr. DeLuca $12,500 per month, plus any pre-authorized expenses incurred in providing services, under the Consulting Agreement. Related party consulting fees pursuant to this agreement for the six months ended June 30, 2013 and 2012 were $75,000 and $75,000, respectively, and for the three months ended June 30, 2013 and 2012 were $38,000 and $38,000, respectively. As of June 30, 2013, the accounts payable to Mr. DeLuca was $24,000.

In addition, the Company receives financial advisory services from Burnham Hill Partners, LLC ("BHP"). Jason Adelman, a principal of BHP, is a greater than 5% shareholder of the Company. Related party financial advisory fees paid to BHP for the six months endedJune 30, 2013 and 2012 were $72,000 and $72,000, respectively and for the three months ended June 30, 2013 and 2012 were $36,000 and $36,000, respectively. As of June 30, 2013, there was $0 accounts payable to BHP.

Pursuant to a Sales Partner Agreement between Glowpoint and Nancy K. Holst, Ms. Holst is entitled to certain sales commissions. Ms. Holst is the wife of Peter Holst, the Company's President and CEO. For the six months ended June 30, 2013, she earned the sum of $6,000. As of June 30, 2013, there was $6,000 accrued for payment to Ms. Holst.

Transactions with related parties, including the transactions referred to above, are reviewed and approved by independent members of the Board of Directors of the Company. The independent members of the Company's Board reviewed and approved each of the related party transactions referred to above.