| Related-Party Transactions |
NOTE 4. RELATED-PARTY TRANSACTIONS
We are externally managed pursuant to contractual arrangements with
our Adviser and our Administrator, which collectively employ all of
our personnel and pay their salaries, benefits and general expenses
directly. The current advisory agreement with our Advisor (the
“Advisory Agreement”) and the current administration
agreement with our Administrator (the “Administration
Agreement”) became effective February 1, 2013. A summary
of each of these agreements is provided in Note 4 to our
consolidated financial statements included in our Form 10-K. There
were no material changes to either agreement during the nine months
ended September 30, 2015.
The following table summarizes the management fees, incentive fees
and associated credits and the administration fees reflected in our
accompanying Condensed Consolidated Statements of
Operations:
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For the Three Months Ended September 30,
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For the Nine Months Ended September 30,
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2015 |
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2014 |
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2015 |
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2014 |
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Management fee(1)(2)
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$ |
356,871 |
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$ |
300,552 |
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$ |
981,011 |
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$ |
778,047 |
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Credit from voluntary, irrevocable waiver by Adviser’s board
of directors(2)(3)
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— |
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— |
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(320,905 |
) |
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— |
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Net fee to our Adviser
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$ |
356,871 |
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|
$ |
300,552 |
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|
$ |
660,106 |
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|
$ |
778,047 |
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Administration fee(1)(2)
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$ |
180,722 |
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$ |
144,952 |
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$ |
489,510 |
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$ |
276,157 |
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(1) |
Pursuant to the Advisory and
Administration Agreements, respectively, which became effective on
February 1, 2013. |
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(2) |
Reflected as a line item on our
accompanying Condensed Consolidated Statements of
Operations.
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(3) |
The credit received from our Adviser
for the nine months ended September 30, 2015, was attributable
to a finder’s fee earned by our Adviser in connection with a
farm we acquired during the three months ended March 31, 2015,
which fee was granted to us as a waiver to be applied against the
fees we pay to our Adviser. |
Related-Party Fees Due
Amounts due to related parties on our accompanying Condensed
Consolidated Balance Sheets as of September 30, 2015, and
December 31, 2014, were as follows:
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As of 9/30/2015 |
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As of 12/31/2014 |
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Management fee due to Adviser
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$ |
356,871 |
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$ |
301,487 |
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Other due to Adviser(1)
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|
1,867 |
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|
3,187 |
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Total due to Adviser
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358,738 |
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|
304,674 |
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Administration fee due to Administrator
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|
180,722 |
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|
166,427 |
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Total due to Administrator
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180,722 |
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|
166,427 |
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Total due to related parties (2)
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$ |
539,460 |
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$ |
471,101 |
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(1) |
Other fees due to related parties
primarily relate to miscellaneous general and administrative
expenses paid by our Adviser or Administrator on our behalf. |
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(2) |
Reflected as a line item on our
accompanying Condensed Consolidated Balance Sheets.
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