This excerpt taken from the CRNT 6-K filed Oct 29, 2007.
NOTE 12: RELATED PARTY BALANCES AND TRANSACTIONS
Most of the related party balances and transactions are with related companies and principal shareholders.
Yehuda Zisapel is a principal shareholder and Zohar Zisapel is the Chairman of the Board of Directors and a principal shareholder of the Company. They are brothers who, as of September 30, 2007, owned 19.9% of the Companys ordinary shares in the aggregate. They are also founders, directors and principal shareholders of several other companies that are known as the RAD-BYNET group.
Members of the RAD-BYNET group provide the Company on an as-needed basis with legal, management information systems, marketing, and administrative services, and the Company reimburses each company for its costs in providing these services. The aggregate amounts of these expenses for each of the nine months ended on September 30, 2006 and 2007 (unaudited) were approximately $250 and $365, respectively.
The Company leases its offices in Israel from real estate holding companies controlled by Yehuda and Zohar Zisapel. During 2005, the Company extended its facility lease agreement for an additional two years. Additionally, the Company leases the U.S. subsidiary office space from a real estate holding company controlled by Yehuda and Zohar Zisapel. The lease for this facility is valid until September 2008. The aggregate amounts of rent and maintenance expenses related to these properties for each of the nine months ended on September 30, 2006 and 2007 (unaudited) were approximately $302 and $67, respectively.
The Company purchases certain inventory components from other members of the RAD-BYNET group, which are integrated into its products. The aggregate purchase price of these components for each of the nine months ended September 30, 2006 and 2007 (unaudited) was approximately $2,943 and $2,062, respectively.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands)
Transactions with related parties: