NOTE 6 – RELATED PARTY TRANSACTIONS

The Company currently maintains an executive office in Florida, which is leased by GreenBlock Capital LLC, an investment firm in which the Company’s President serves as a Managing Director but holds no equity or voting rights. The Company has no formal agreement for this space and pays no rent. The Company also sublets office space in Atlanta, Georgia, where it pays $500 per month on a month-to-month basis. The lessor is a company for which our CEO previously served as a senior executive.

In May 2018, we received $12,500 from our Chief Executive Officer and a Director in the Follow-On Bridge Offering (see Note 7).

During the three months ended March 31, 2019, the Company received an additional $549,000 from our equity method investment (see Note 5) for prepaid management fees. As of March 31, 2019, $492,857 of these accumulated fees remain as contract liabilities and we recognized $173,810 as revenues based on the service period. As of December 31, 2018, $117,667 of these fees remained as contract liabilities.

During the three months ended March 31, 2019, the Company received $62,500 from EPH as a note payable with interest payable at 6% annually. This has been presented as note payable – related party on the consolidated balance sheets.

During the three months ended March 31, 2019, the Company did not incur any legal fees with a related party; however, during the three months ended March 31, 2018, the Company incurred approximately $14,773 from a law firm in which our audit committee chair is an employee. As of March 31, 2019 and December 31, 2018, our accounts payable and accrued expenses include approximately $3,356 and $30,000, respectively, for legal fees incurred in the prior year with this law firm.