Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2023
RELATED PARTY TRANSACTIONS  
Related-Party Transactions

16. RELATED-PARTY TRANSACTIONS

 

Transactions with related parties are entered into in the normal course of business and are measured at the amount established and agreed to by the parties.

 

In April 2015, Lowell entered into a services agreement with Olympic Management Group (“OMG”), for advisory and technology support services, including the access and use of software licensed to OMG to perform certain data processing and enterprise resource planning (ERP) operational services. OMG is owned by one of the Company’s co-founders. The agreement provides for the dollar-for-dollar reimbursement of expenses incurred by OMG in performance of its services. Amounts paid to OMG for the years ended December 31, 2023 and 2022, were $nil and $36, respectively.

 

During October 2022, Cannaco Research Corporation, an existing customer, became a related party when Ms. Lawrence, a new member joined the Board of Directors. Total sales recognized for Cannaco Research Corporation for the years ended December 31, 2023 and 2022 were $487 and $274, respectively. For the years ended December 31, 2023 and 2022, cash collected from Cannaco Research Corporation was $476 and $223, respectively. In December, 2022, the Company entered into an agreement with Cannaco Research Corporation to lease approximately 2,000 square feet of warehouse space in Los Angeles to facilitate distribution services in the area. The lease was a 12 month storage agreement for the warehouse space. Total payments to Cannaco Research Corporation for the lease were $130 and $10 in the years ended December 31, 2023 and December 31,2022, respectively.