NOTE 7 – RELATED PARTY TRANSACTIONS

The Company currently maintains an executive office in Florida, which is leased by GreenBlock Capital LLC, an investment firm that 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 that our CEO previously served as a senior executive.

In March 2017, all outstanding Director accounts payable, accrued expenses and notes payable – related parties with an aggregate amount of $156,368, were converted into the Company’s Bridge Offering (see Note 9). Further, $75,000 of the proceeds from the Bridge Offering was received from the Company’s Chief Executive Officer and a Director.

In April 2017, the Company’s President forgave $112,797 of deferred salary. This amount was reclassified from accrued expenses to additional paid in capital during 2017.

In May 2018, we received $12,500 from our Chief Executive Officer and a Director in the Follow-On Bridge Offering (see Note 9).

During the year ended December 31, 2018, the Company received $151,000 from our equity method investment (see Note 5) for prepaid management fees. As of December 31, 2018, $117,667 of these fees remain as contract liabilities and we recognized $33,333 as revenues based on the service period.

During the year ended December 31, 2018, the Company incurred legal fees of approximately $48,000 from a law firm in which our audit committee chair is an employee.  As of December 31, 2018, our accounts payable and accrued expenses include approximately $30,000 due to this law firm.