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Related Party Transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 8 – Related Party Transactions

 

The Company accrued and paid consulting fees of $57,917 for four months to a company owned by Mr. Jack Ross, Chief Executive Officer of the Company. The Company expensed $171,917 during the three months ended June 30, 2018 and $229,833 during the six months ended June 30, 2018. As of June 30, 2018, the total outstanding balance was $0 for consulting fees and reimbursements.

 

On January 22, 2015, the Company entered into a Loan Agreement with Knight Therapeutics (Barbados) Inc. (“Knight”), a related party, for the purchase of the Focus Factor assets. At June 30, 2018, the Company owed Knight $0 on this loan, net of debt issuance cost (see Note 10).

 

On June 26, 2015, the Company entered into a Security Agreement with Knight Therapeutics, Inc., through its wholly owned subsidiary Neuragen Corp., for the purchase of Knight Therapeutics, Inc.’s assets. At June 30, 2018, the Company owed Knight $277,381 in relation to this agreement (see Note 10).

 

On August 18, 2015, the Company entered into a Consulting Agreement with Kara Harshbarger, the co-founder of Hand MD, LLC, pursuant to which she will provide marketing and sales related service. The Company pays Ms. Harshbarger $10,000 a month for one year unless the Consulting Agreement is terminated earlier by either party. The Company has extended this agreement on a month to month basis. Hand MD, LLC is a 50% owner in Hand MD Corp. The Company expensed $30,000 through payroll for the three months ended June 30, 2018 and $60,000 for the six months ended June 30, 2018. As of June 30, 2018, the total outstanding balance was $0.

 

On November 12, 2015, the Company entered into a Loan Agreement with Knight Therapeutics (Barbados) Inc., a related party, for the purchase of NomadChoice Pty Limited and Breakthrough Products, Inc. At June 30, 2018, the Company owed Knight $0 on this loan, net of debt issuance cost (see Note 10).

 

The Company expensed royalty of $132,987 during the three months ended June 30, 2018 and $280,009 during the six months ended June 30, 2018. At June 30, 2018 NomadChoice Pty Ltd., a subsidiary of the Company, owed Knight Therapeutics $268,986 in connection with a royalty distribution agreement.

 

The Company expensed royalty of $3,954 during the three months ended June 30, 2018 and $9,616 during the six months ended June 30, 2018. At June 30, 2018 Sneaky Vaunt Corp., a subsidiary of the Company, owed Knight Therapeutics $8,954 in connection with a royalty distribution agreement.

 

The Company expensed commissions of $14,078 during the three months ended June 30, 2018 and $27,631 during the six months ended June 30, 2018. At June 30, 2018, Sneaky Vaunt Corp., a subsidiary of the Company, owed Founded Ventures, owned by a shareholder in the Company, $9,059 in connection with a commission agreement.

 

The Company expensed royalty of $347 during the three months ended June 30, 2018 and $1,911 during the six months ended June 30, 2018. At June 30, 2018 The Queen Pegasus, a subsidiary of the Company, owed Knight Therapeutics $678 in connection with a royalty distribution agreement.

 

The Company expensed commissions of $2,905 during the three months ended June 30, 2018 and $5,890 during the six months ended June 30, 2018. At June 30, 2018, The Queen Pegasus, a subsidiary of the Company, owed Founded Ventures $1,439 in connection with a commission agreement.

 

The Company paid $62,500 and $125,000 during the three and six months ended June 30, 2018 to Hand MD, Corp, related to a royalty agreement. At June 30, 2018, the Company owed Hand MD Corp. $118,617 in minimum future royalties.