12. Related Party Transactions
The Company had various transactions
with a member of its board of directors and a controlling stockholder of the Company, which is considered a related party.
| ● | The Company leases its headquarters office space in Minnesota from a company owned by the stockholder.
The lease is considered a common control leasing arrangement. The lease liability due to the stockholder was $0.9 million and $0.9 million
as of June 30, 2025 and December 31, 2024, respectively. |
| ● | The Company received Term Loans from the stockholder during 2024 and 2025 (see Note 8). |
| ● | The Company has a shared services arrangement with a company that is indirectly owned by the stockholder,
for certain support services used in the course of business. This arrangement originated on January 1, 2022 with a term of two years that
automatically renews each year thereafter unless terminated by either party. In relation to the shared services arrangement, the Company
expensed less than $0.1 million during each of the three and six months ended June 30, 2025 and 2024. |
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