Note 16. Related Parties

The following is a summary of assets, liabilities, and income transactions with all related parties:

Schedule of Related Parties

Schedule of Sale to Related Parties

A Construir SA

On a recurring basis, we have engaged A Construir S.A., a heavy construction company operating in Barranquilla, Colombia, to carry out construction related to our ongoing capital expenditures at our production facilities in Colombia. Affiliates of Jose Daes and Christian Daes, the company’s CEO and COO, respectively, had an ownership stake in A Construir through June 1, 2022. We purchased $4,312 during the five months through May 31, 2022, and $9,292 during the year ended December 31, 2021, respectively, from A Construir S.A. for construction and facilities which have been capitalized on the Company’s balance sheet as property, plant and equipment. Given that A Construir is no longer considered a related party, amounts as of December 31, 2022, are not reflected as balances due from and due to related parties as of December 31, 2022, on the face of the Consolidated Balance Sheet nor the summary table above.

Alutrafic Led SAS

In the ordinary course of business, we sell products to Alutrafic Led SAS (“Alutrafic”), a fabricator of electrical lighting equipment. Affiliates of Jose Daes and Christian Daes, the Company’s CEO and COO, respectively, have an ownership stake in Alutrafic. We sold $941, $1,104, and $697, to Alutrafic during fiscal years 2022, 2021, and 2020, respectively, and had outstanding accounts receivable from Alutrafic for $249 and $526 as of December 31, 2022, and 2021, respectively.

Santa Maria del Mar SAS

In the ordinary course of business, we purchase fuel for use at our manufacturing facilities from Estación Santa Maria del Mar SAS, a gas station located near our manufacturing campus which is owned by affiliates of Jose Daes and Christian Daes, the Company’s CEO and COO, respectively. During the years ended December 31, 2022, 2021, and 2020, we purchased $935, $291, and $311, respectively. Additionally, during 2022 we also acquired a lot of land adjacent o our manufacturing campus from Santa maria del Mar SAS for $352.

Fundacion Tecnoglass-ESWindows

Fundacion Tecnoglass-ESWindows is a non-profit organization set up by the Company to carry out social causes in the communities around where we operate. During the years ended December 31, 2022, 2021, and 2020, we made charitable contributions for $1,564, $1,350, and $1,259, respectively.

Studio Avanti SAS

In the ordinary course of business, we sell products to Studio Avanti SAS (“Avanti”), a distributer and installer of architectural systems in Colombia. Avanti is owned and controlled by Alberto Velilla, who is director of Energy Holding Corporation, the controlling shareholder of the Company. We sold $534, $757, and $355, to Avanti during fiscal years 2022, 2021, and 2020, respectively, and had outstanding accounts receivable from Avanti for $113 and $408 as of December 31, 2022, and 2021, respectively.

Vidrio Andino Joint Venture (A Saint-Gobain subsidiary)

On May 3, 2019, we consummated a joint venture agreement with Saint-Gobain, a world leader in the production of float glass, a key component of our manufacturing process, whereby we acquired a 25.8% minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain. The purchase price for our interest in Vidrio Andino was $45 million, of which $34.1 million was paid in cash and $10.9 million paid through the contribution of land on December 9, 2020. On October 28, 2020, we acquired said land from a related party and paid for it with the issuance of an aggregate of 1,557,142 ordinary shares of the Company, valued at $7.00 per share, which represented an approximate 33% premium based on the closing stock price as of October 27, 2020.

The land will serve the purpose of developing a second float glass plant nearby our existing manufacturing facilities which we expect will carry significant efficiencies for us once it becomes operative, in which we will also have a 25.8% interest. The new plant will be funded with proceeds from the original cash contribution made by the Company, operating cash flows from the Bogota plant, debt incurred at the joint venture level that will not consolidate into the Company and an additional contribution by us of approximately $12.5 million if needed (based on debt availability or other sources).

In the ordinary course of business, we purchased $20,764, $15,308, and $14,339, from Vidrio Andino in 2022, 2021, and 2020, respectively. As of December 31, 2022, and 2021, we had outstanding payables to Vidrio Andino for $4,853 and $2,834, respectively. We recorded equity method income of $6,680, $4,177, and $1,387, on our Consolidated Statement of Operations during the years ended December 31, 2022, 2021, and 2020, respectively.

Zofracosta SA

Our subsidiary ES has an investment in Zofracosta SA, a real estate holding company and operator of a tax-free zone located in the vicinity of the proposed glass plant being built through our Vidrio Andino joint venture, valued at $632 and $764 as of December 31, 2022, and 2021, respectively. Affiliates of Jose Daes and Christian Daes, the Company’s CEO and COO, respectively, have a majority ownership stake in Zofracosta SA.