10. Related Party Transactions

 

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 three and six months ended June 30, 2016, Control4 recognized revenue from sales of this product line of $34,000 and $63,000, 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.  As of June 30, 2016, the Company had accounts payable due to this related party of $19,000.

 

The Company has a royalty agreement with a company that has a director who is also a member of the Company’s Board of Directors.  For the three and six months ended June 30, 2016, the Company had incurred royalty expenses of $0.1 million and $0.2 million and had accounts payable due to this related party of $0.1 million.