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RELATED PARTY TRANSACTIONS
3 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

The Company has a consulting agreement with Matthew Schultz, our Chief Executive Officer, for management services. In accordance with this agreement, as amended, Mr. Schultz provides services to us in exchange for $15,000 in compensation for services plus a $1,000 medical insurance stipend, each month plus a bonus of 0.5% of gross revenue. The Company has also agreed to reimburse Mr. Schultz for expenses incurred. The term of the agreement is one year and automatically renews until cancelled by either party. During the three months ending December 31, 2017 and 2016, Mr. Schultz earned $48,163 and $45,000, respectively, in accordance with this agreement. During the three months ending December 31, 2017, Mr. Schultz allowed the Company to defer $42,973 as accrued compensation. As of December 31, 2017, the Company owed Mr. Schultz $42,973 in deferred compensation and reimbursable expenses.

 

The Company has a consulting agreement with Zachary Bradford, our Chief Financial Officer, for management services. In accordance with this agreement, as amended, Mr. Bradford provides services to us in exchange for $15,000 in compensation for services plus a $1,000 medical insurance stipend, each month plus a bonus of 0.5% of gross revenue. The Company has also agreed to reimburse Mr. Bradford for expenses incurred. The term of the agreement is one year and automatically renews until cancelled by either party. During the three months ending December 31, 2017 and 2016, Mr. Bradford earned $48,163 and $45,000, respectively, in accordance with this agreement. During the three months ending December 31, 2017, Mr. Bradford allowed the Company to defer $48,163 as accrued compensation. As of December 31, 2017, the Company owed Mr. Bradford $65,016 in deferred compensation and reimbursable expenses.

On August 13, 2017, the Company executed a 15% promissory note with a face value of $80,000 with Zachary Bradford, its President and Chief Financial Officer. Under the terms of the promissory note the Company received $80,000 and agreed to repay the note evenly over 12 months. As of December 31, 2017, Company’s owed $53,333 in principal and $600 in accrued interested under the terms of the agreement.

The Company has a consulting agreement with Bryan Huber, our Chief Operations Officer, for management services. In accordance with this agreement, as amended, Mr. Huber provides services to us in exchange for $117,000 in compensation for services plus a $500 medical insurance stipend and a bonus of 0.5% of gross revenue. The Company has also agreed to reimburse Mr. Huber for expenses incurred. The term of the agreement is one year and automatically renews until cancelled by either party. During the three months ending December 31, 2017 and 2016, Mr. Huber earned $30,913 and $26,000, respectively, in accordance with this agreement. During the three months ending December 31, 2017, Mr. Huber allowed the Company to defer $2,451 as accrued compensation. As of December 31, 2017, the Company owed Mr. Huber $8,701 in deferred compensation and reimbursable expenses.

 

On March 10, 2017, the Company entered into a consulting agreement with Adam Maher, its Senior Vice President, for management and business development services. In accordance with this agreement, Mr. Maher provides services to the Company in exchange for $120,000 per year, 0.5% bonus on revenues, 2.0% on revenue from direct sales plus reimbursable expenses incurred. During the three months ending December 31, 2017, $30,167 was recorded as a consulting expenses under this this agreement. As of December 31, 2017, Mr. Maher was owed $11,971 in accrued compensation and unreimbursed expenses in accordance with this agreement.

 

The Company’s line of business requires high skilled employees who are appropriately compensated for their specialized skills. Employment agreements range from $90,000 to $172,500 per year, and include a taxable stipend for healthcare, performance bonuses and are subject to standard payroll taxes.