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Related Party Transactions
12 Months Ended
Dec. 31, 2020
Related Party Transactions  
Related Party Transactions

Note 12- Related Party Transactions

 

From July 2010 until December 2017, the accounting firm J.L. Hofmann & Associates, P.A. (“JLHPA”), whose principal is our CFO John L. Hofmann, provided financial consulting and accounting services to the Company. In December 2017, J.L. Hofmann & Associates, P.A. merged with Kabat, Schertzer, De La Torre, Taraboulos & Co, LLC (“KSDT”). The Company paid $53,395 and $37,334 to KSDT for its services in the years ended December 31, 2020 and 2019, respectively.

 

The Company’s consultant and shareholder Hank Leibowitz receives compensation of $7,500 per month, totaling $90,000 for the 2020. At December 31, 2020, Mr. Leibowitz was owed accrued compensation of $45,000, which is included in accounts payable and accrued expense on the accompanying balance sheets.

 

On April 15, 2017, the Company entered into an assembly agreement with Liberty Plugins, Inc. (“Liberty”) to assemble Liberty’s Hydra electronic vehicle charging systems and ship completed Hydras to Liberty’s facility in Santa Barbara, California (the “Liberty Agreement”). Initially, Liberty agreed to pay $1,000 for the first 10 Hydras assembled in a month, $750 per Hydra for the next 10 Hydras assembled per month and $500 per Hydra for each Hydra assembled above 20 per month. The Company has never assembled/shipped more than 10 Hydras in any month and does not expect to do so in the future. Revenue for these products is reflected in the revenue –related party on the Company’s consolidated statement of operations and amounted to $40,000 and $24,000 for the years ended December 31, 2020 and 2019, respectively. The Liberty Agreement is subject to termination by either party on 30 days notice.

 

The company’s CEO is a minority interest holder and member of the Board of Directors of Liberty. Therefore, transactions with Liberty have been disclosed as transactions with a related party.

 

See Note 6 for convertible notes issued to related parties and Note 9 for repurchase of stock from a related party.