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I CROWDERGULF, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 AND 2016 7. RELATED PARTY TRANSACTIONS I Gulf Equipment Corporation provided accounting services to the Company with a value of approximately $60,000 for both of the years ended December 31, 2017 and 2016. This amount is included in operating expenses in the accompanying statements of operations"\Prior to the I, redemption of Gulf Equipment Corporation's preferred interest, this amount was'\treated as a contribution in the Company's books. During 2017, Gulf Equipment Corporation, a related party, provided disaster retry-subcontract I services to the Company with a value of approximately $1,500,000 o�r<tkeyear\ended December 31, 2017. Accounts payable for such services were approximately $ 3;000 a Dere fiber 31, 2017. The Company contracted with JW Legacy Group, LLC, a relat for staffingVservices related to various contracts. Costs of such services totaled a roximatel $1,600,000 and $226,000 for the years ended December 31, 2017 and 2016, respectively, andyncludedin costs of sales in the accompanying statements of operations. Accounts payable-foch services were approximately ® $193,000 at December 31, 2017. i, n I The Company periodically lends money to related paries. The.Company was owed $225,951 and $216,770 from related parties at December 31, 201,7/and 20, respectively. I In 2016, the Company borrowed $5,000 000 from�Edgayinancial II, a related party, for operational needs. The loan bears interest at a rate of 2.5% with no set repayment terms. The loan balance was paid in its entirety in 2017. \) 8. CONCENTRATIONS IThe Company maintain's��its��cas�� bank deposit accounts. At December 31, 2017, deposits totaling approximately $6.7 million�in�re`ir excess of the Federal Deposit Insurance Corporation coverage of $250,000 per 'n�st\u%he?Company has not experienced any losses in such accounts and believes it is�not exposed to any significant credit risk on cash and cash equivalents. The Company had'tw\\ernmental entities that accounted for approximately 17% and 11% of the I Company's revenues for the year ended December 31, 2017 and one governmental entity that accounted\forrapproximately 34% of the Company's revenues for the year ended December 31, 20"TTwo governmental entities accounted for approximately 12% and 10% of the current portion I (ot contracf\receivables at December 31, 2017 and three governmental entities accounted for approximately 31%, 11% and 10% of the current portion of contract receivables at December 31, 201 I I I 11