Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.22.2.2
Related Party Transactions
9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions 13. Related Party Transactions

The Company may be deemed to be controlled by Alan B. Levan, Chairman, Chief Executive Officer and President of the Company, John E. Abdo, Vice Chairman of the Company, Jarett S. Levan, a director of the Company and former President of the Company, and Seth M. Wise, a director of the Company and former Executive Vice President of the Company. Together, they may be deemed to beneficially own shares of the Company’s Class A Common Stock and Class B Common Stock representing approximately 80% of the Company’s total voting power. Further, in connection with the spin-off of BBX Capital during September 2020, Mr. Jarett Levan became the Chief Executive Officer and President and a director of BBX Capital, Mr. Alan Levan became the Chairman of the Board of BBX Capital, John E. Abdo became Vice Chairman of BBX Capital and Seth M. Wise became Executive Vice President and a director of BBX Capital. Mr. Alan Levan, Mr. Abdo, Mr. Jarett Levan and Mr. Wise may also be deemed to control BBX Capital

through their ownership of BBX Capital’s Class A Common Stock and Class B Common Stock. Mr. Alan Levan and Mr. John Abdo also receive compensation from BBX Capital.

During the three and nine months ended September 30, 2022, the Company recognized expense to the Abdo Companies, Inc. of $38,000 and $153,000, respectively, in exchange for certain management services. During the three and nine months ended September 30, 2021, the Company recognized expense to the Abdo Companies, Inc. of $38,000 and $115,000, respectively, for such services. John E. Abdo, the Company’s Vice Chairman, is the principal shareholder and Chief Executive Officer of Abdo Companies, Inc.

In addition to the agreements listed above, the Company reimburses BBX Capital for advisory, risk management, administrative and other services. The Company reimbursed BBX Capital $0.3 million and $0.1 million during the three months ended September 30, 2022 and 2021, respectively, and $1.3 million and $0.6 million during the nine months ended September 30, 2022 and 2021, respectively, for such services. Further, BBX Capital reimbursed the Company less than $0.1 million during each of the three and nine months ended September 30, 2022 and 2021. The Company had $0.4 million in accrued expenses for the services described above as of September 30, 2022, and no amounts accrued for the services described above as of December 31, 2021.