10. Related Party Transactions

For the years ended December 31, 2013 and 2014, the Company had sales agreements with companies affiliated with certain of its investors. The following table sets forth revenue from product sales to these companies (in thousands):

 

As of December 31, 2014, the Company had accounts receivable from these companies totaling $1.5 million.

For the year ended December 31, 2015, the former owner of Nexus, who was an employee of the Company, owned and operated a Control4 authorized distributorship in Dubai until September 13, 2015, when he sold the distributorship to an unrelated third party. Revenue from product sales to that distributor for the period from the acquisition date of January 30, 2015 through September 13, 2015 was $0.4 million. As of December 31, 2015, the Company did not have accounts receivable from this related party.

In addition, a member of the Company’s Board of Directors is also an officer of a company that has a product line the Company began selling in its online store in November 2015.  For the year ended December 31, 2015, Control4 recognized revenue from sales of this product line of $9,000, net of cost of revenue, consistent with the Company’s accounting policy on sales of third-party products sold through the Company’s online ordering system.  At December 31, 2015, the Company had accounts payable due to this related party of $34,000. 

During the year ended December 31, 2015, the Company executed a royalty agreement with a company that has a director who is also a member of the Company’s Board of Directors.  At December 31, 2015, the Company had incurred royalty expenses of $40,000 and had accounts payable due to this related party of $40,000.