8. Related
Party Transactions and Balances
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Three Months Ended
March 31, 2020 | |
Three Months Ended
March 31, 2019 |
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| Related party transaction included within interest expense: | |
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| Interest expense on promissory notes issued to relatives of the Chairman and Chief Executive Officer of the Company | |
$ | 78,792 | | |
$ | 74,782 | |
| Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse | |
$ | 356,454 | | |
$ | 333,250 | |
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| Related party transactions included within selling, general and administration expense: | |
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| Consulting fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company | |
$ | 62,400 | | |
$ | 47,400 | |
| Stock-based compensation expense on the grant of stock options to a director of the Company | |
$ | — | | |
$ | 264,589 | |
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| Related party transactions included within product development expense: | |
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| Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company | |
$ | 30,000 | | |
$ | — | |
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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