Related Party Payables |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Related Party Payables | |
| Related Party Payables | Note 8. Related Party Payables Management Agreement (December 6, 2019, was not renewed post 2022) On December 6, 2019 the Company entered into a management agreement (the “Management Agreement”) with Elauwit Connection, LLC, a Wyoming limited liability company (“Elauwit LLC”), a related party, that was dissolved in October 2024, whereby certain key persons of Elauwit LLC, shall provide management services to manage all aspects of the Company, subject to supervision and oversight by the Company’s board of directors (the “Board”). The key persons (“Key Persons”) who will supervise all services include the Executive Chairman and the Chief Executive Officer of the Company. In consideration of the services provided by the Key Persons, the Company paid Elauwit LLC a sum of $45 thousand per month during the initial year of the Management Agreement, subject to potential annual increases and other compensation, as determined by the Board. The term of the agreement was three (3) years commencing on December 1, 2019 and terminated on November 30, 2022. Beginning in December 2020, the Key Persons elected to defer portions of their consideration. On August 20, 2024, as part of the Deferred Compensation Agreement, defined below, the Company agreed to pay the Key Persons $0.5 million, at an interest rate of 3.25%, on cumulative balances owed. During the three and nine months ended September 30, 2025 and 2024, the Company incurred $3 thousand, $10 thousand, $4 thousand, and $13 thousand of interest expense, respectively, which is recognized in interest expense in the unaudited condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the Deferred Compensation Agreement had a balance of $0.3 million and $0.5 million, respectively. Subsequent to November 30, 2022, the Company continued making payments under an informal agreement to same Key Persons. During three and nine months ended September 30, 2025 and 2024, the Company incurred expenses of $90 thousand, $270 thousand, $90 thousand, and $245 thousand, respectively, included in general and administrative expenses on the unaudited condensed consolidated statements of operations. Deferred Compensation Agreement (August 20, 2024) On August 20, 2024 the Company entered into a deferred compensation agreement (the “Deferred Compensation Agreement”) with certain executives of the Company, whereby the executives, deferred a certain portion of their salaries. The deferred salaries bear interest of 3.25%, on all cumulative balances outstanding as of February 1, 2022. The Company pays each of the executives $2.5 thousand per month and there is no fixed maturity date. During the three and nine months ended September 30, 2025 and 2024, the Company incurred $1 thousand, $2 thousand, $1 thousand, and $3 thousand of interest expense, respectively, which is recognized in interest expense in the unaudited condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the Deferred Compensation Agreement had a balance of $0.1 million and $0.1 million, respectively. See Note 14, Subsequent Events, for additional details regarding the payoff of the Management Agreement and the Deferred Compensation Agreement. |