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RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS

NOTE 6 – RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS

 

Convertible Note and Due to Parent and Affiliates

 

During the six months ended June 30, 2023 and during 2022, the Company had the availability of, but not the contractual right to, intercompany financing from the Parent and Affiliates in the form of either cash advances or borrowings under a convertible note (as discussed below).

 

The convertible notes balances were $61,356 at December 31, 2022. In January 2023, the Company borrowed an additional $48,143 under such convertible notes, and subsequently repaid the outstanding balances of the convertible notes in full in February 2023, such that there were no amounts outstanding under convertible notes as of June 30, 2023.

 

Management Service Agreement

 

In 2020, the Company entered into a management services agreement with Tekcapital Europe Ltd. (a related party, related through common ownership), for which the Company was billed $25,000 quarterly. Effective February 1, 2022, the original management services agreement was amended to have the Company billed at $35,000 quarterly. While the agreement does not stipulate a specific maturity date, it can be terminated with 30 calendar days written notice by any party.

 

The related party currently provides the following services:

 

  ● Support and advice to the Company in accordance with their area of expertise;

 

  ● Research, technical review, legal review, recruitment, software development, marketing, public relations, and advertisement; and

 

  ● Advice, assistance, and consultation services to support the Company or in relation to any other related matter.

 

During the three months ended June 30, 2023 and 2022, the Company incurred $35,000 in each respective period under the management services agreement. During the six months ended June 30, 2023 and 2022, the Company incurred $70,000 in each respective period under the management services agreement.

 

Rent of Office Space

 

Prior to the February 1, 2022 amendment of the aforementioned management services agreement, the Company was provided with rent-free office space by the Parent and Affiliates. Effective February 1, 2022, Tekcapital began to bill the Company for an allocation of rent paid by Tekcapital on the Company’s behalf. The Company recognized $22,992 and $45,760 of expense related to this month-to-month arrangement for the three and six months ended June 30, 2023, respectively.