Note 6 – Related Party Transactions

Management Agreement

Upon completion of the Company’s initial public offering on July 1, 2016, the Company and the Advisor entered into an amended and restated management agreement (the “Management Agreement”). Certain material terms of the Management Agreement are summarized in the section titled “Business — Our Advisor and our Management Agreement,” contained in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019 filed with the SEC on March 9, 2020.

Management Fees and Accrued Management Fees

The Company’s management fee to the Advisor is calculated in accordance with the terms of the Management Agreement which requires an annual base management fee equal to 1.5% of our stockholders’ equity (as defined in the Management Agreement). For the three months ended March 31, 2020 and  2019, management fees of $2,002 and $1,334, respectively, were incurred and expensed by the Company. Accrued management fees due to the Advisor were $2,002 and $1,727 as of March 31, 2020 and December 31, 2019, respectively. No incentive management fee was incurred by the Company during the three months ended March 31, 2020 or 2019.

Allocated General and Administrative Expenses

In the future, the Company may receive allocations of general and administrative expenses from the Advisor that are either clearly applicable to or were reasonably allocated to the operations of the Company.

Related Party Balances

A rollforward of the due from related parties and due to related party balance, net, as of March 31, 2020 is as follows: