RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2015

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5. RELATED PARTY TRANSACTIONS

The shopping center adjacent to the Atlantis (the “Shopping Center”) is owned by Biggest Little Investments, L.P. (“BLI”). John Farahi, Bob Farahi and Ben Farahi are each principal stockholders of the Company and beneficially own limited partnership interests in BLI indirectly through Maxum LLC, which is the general partner of BLI. Ben Farahi is the sole manager of Maxum LLC, and neither John Farahi nor Bob Farahi has any management control over BLI or the Shopping Center. Ben Farahi formerly held positions of Co-Chairman of the Board, Secretary, Treasurer and Chief Financial Officer of the Company. John Farahi is the Co-Chairman of the Board, Chief Executive Officer and Secretary of the Company, and Bob Farahi is the Co-Chairman of the Board and President of the Company.

In addition, we share a driveway with and lease approximately 37,000 square-feet from the Shopping Center for a minimum lease term of 15 years at an original annual rent of $300 thousand plus common area expenses, subject to increase every year beginning in the 61st month based on the Consumer Price Index. As of June 30, 2015 the annual rent is $377 thousand. We have the option to extend the lease for three individual five-year terms beyond the initial 15 year term, and at the end of the extension periods, we have the option to purchase the leased driveway section of the Shopping Center. For the three month periods ended June 30, 2015 and 2014, the Company paid $94 thousand in rent, plus $25 thousand in operating expenses related to this lease and $85 thousand in rent, plus $34 thousand for operating expenses related to this lease, respectively. For the six month periods ended June 30, 2015 and 2014, the Company paid $188 thousand in rent, plus $53 thousand expenses related to this lease and $170 thousand in rent, plus $64 thousand for operating expenses related to this lease, respectively.

We occasionally lease billboard advertising, storage space or parking lot space from affiliates of our controlling stockholders. We paid $27 thousand and $28 thousand for the three month periods ended June 30, 2015 and 2014, respectively and $71 thousand and $66 thousand for the six month periods ended June 30, 2015 and 2014 respectively, under these arrangements with affiliates.