Transition report pursuant to Rule 13a-10 or 15d-10

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

 

Expenses prepaid with common stock for the years ended December 31, 2015 and 2014 totaled $135,321 and $229,459, respectively.  The balance at December 31, 2015 relates to stock issued to Greenblock Capital ("GBC") for future services with a remaining amount of $119,167, and shares purchased by the CEO and paid for through salary deductions with a remaining amount of $16,154.  The balance at December 31, 2014 relates to stock issued to Precision CNC for future services.

 

The Company sub-leases approximately 2,500 square feet of assembly, warehouse and office space within the Precision CNC facility located at 1858 Cedar Hill Road in Lancaster, Ohio.  The sublease provides for the Company to pay rent monthly in the amount of $2,500, which covers space and some utilities.  Occupancy costs for the years ended December 31, 2015 and 2014 were $30,000 and $20,000, respectively.  The sublease is month-to-month, however, Precision CNC must provide the Company 90 days notice to terminate.  The Company also purchases much of its machined parts through Precision CNC.  Precision CNC owns a non-controlling interest in the Company, and one of the principals of Precision CNC is a Vice President of Q2P.  The Company also maintains an executive office in Florida, which is leased by GBC.  The Company has no formal agreement for this space, but paid GBC $10,000 and $0 for the space for the years ended December 31, 2015 and 2014, respectively.

 

For the years ended December 31, 2015 and 2014, the amounts paid to Precision CNC totaled $160,601 and $110,814, respectively, and consisted of rent and research and development expenses for machined parts. Accounts payable and accrued expenses at December 31, 2015 and 2014 includes $31,048 and $33,281, respectively, to Precision CNC.

 

In September 2015, the Company received $10,000 from a member of the Board of Directors, who also serves as the Company’s SEC counsel, in exchange for a promissory note to repay this amount plus $500 interest on demand but no earlier than October 1, 2015.  This principal and interest were repaid in December 2015.

 

GBC loaned the Company $60,000 in 2015, which was repaid without interest in the same period.  In connection with the Merger, GBC received 1,000,000 shares of unregistered common stock for consulting services to be rendered in the amount of $260,000. The Company’s (Anpath’s) former director, Christopher J. Spencer, owns a majority interest in GBC, and our CEO is a Managing Director of GBC, although he has no equity or voting rights in GBC.