RELATED PARTY AGREEMENTS |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| RELATED PARTY AGREEMENTS | |
| RELATED PARTY AGREEMENTS |
NOTE 9. RELATED PARTY AGREEMENTS Shared Services Agreement with Fortress On November 12, 2021, the Company and Fortress entered into an arrangement to share the cost of certain legal, finance, regulatory, and research and development employees (the “Shared Services Agreement”). Fortress’ Executive Chairman and Chief Executive Officer is the Executive Chairman of the Company. Under the terms of the Shared Services Agreement, the Company will reimburse Fortress for the salary and benefit costs associated with these employees based upon actual hours worked on Journey-related projects following the completion of the Company’s initial public offering, which occurred in November 2021. In addition, the Company reimburses Fortress for various payroll-related costs and selling, general and administrative costs incurred by Fortress for the benefit of the Company. For the three-month periods ended June 30, 2023 and 2022, Fortress employees have provided services to the Company, and the Company recorded related expenses of approximately $21,000 and $12,000, respectively. For the six-month periods ended June 30, 2023 and 2022, Fortress employees have provided services to the Company, and the Company recorded related expenses of approximately $36,000 and $0.1 million, respectively. At June 30, 2023 and December 31, 2022, the Company’s outstanding balance under the Shared Services Agreement was $0.6 million and $0.4 million, respectively, recorded as due to related party on the condensed consolidated balance sheets. Fortress Income Tax At June 30, 2023, 55.35% of all classes of the Company’s outstanding Common Stock was owned by Fortress. Prior to our initial public offering of securities in 2021, the Company had been filing consolidated federal tax returns and consolidated or combined state tax returns in multiple jurisdictions with Fortress. The Company may still be required to file combined tax returns in certain “combined filing states”. These jurisdictions generally require corporations engaged in unitary business and meet the capital stock requirement of fifty percent to file a combined state tax return. Additionally, see Note 17 below for a discussion of income taxes. |