6.	Royalties

The Company is subject to a royalty agreement based upon sales of certain hair care products. For the three and nine months ended September 30, 2017, the Company recognized $53,206 and $65,318, respectively, in royalty expense related to this agreement. As of September 30, 2017, the $65,318 was included in accounts payable and accrued expenses in regards to this agreement. In addition, the Company shall pay a performance fee in relation to this agreement. In April 2017, the Company issued 217,390 shares of common stock and 108,696 warrants, pursuant to a subscription agreement, for the stated consideration and satisfaction of obligation to pay $50,000 of the performance fee (see Note 7).