7. Related
party transactions and balances
| |
|
|
|
|
|
| |
|
|
Year
Ended December 31, 2019 |
|
Year
Ended December 31, 2018 |
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|
|
|
|
|
| Related party transaction included within
interest expense: |
|
|
|
|
|
Interest
expense on promissory notes issued to relatives of the Chairman
and
Chief Executive Officer of the Company |
|
$ |
321,626 |
$ |
299,126 |
Interest
expense on lines of credit payable to the Chairman and
Chief
Executive Officer of the Company and his spouse |
|
$ |
1,365,967 |
$ |
1,287,822 |
| Interest
expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his
spouse related to financing provided |
|
$ |
1,085,371 |
$ |
- |
| Stock-based
compensation related to stock options granted to a director of the Company |
|
$ |
2,158,441 |
$ |
- |
| |
|
|
|
|
|
| Related party transactions included within
selling, general and administrative expenses: |
|
|
|
|
|
| Consulting
fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company |
|
$ |
189,600 |
$ |
189,600 |
| Stock-based
compensation related to stock options granted to four directors of the Company |
|
$ |
770,421 |
$ |
- |
| Selling,
general and administrative expenses related to the modification of stock options to three directors of the Company |
|
$ |
29,204 |
$ |
- |
| |
|
|
|
|
|
| Related party transactions included within
selling, general and administrative expenses: |
|
|
|
|
|
| Consulting
fees to a relative of the Chairman and Chief Executive Officer of the Company |
|
$ |
120,000 |
$ |
- |
Interest
on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have
been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been
recorded at their estimated fair value.
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