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Related Party Transactions
3 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 10 – Related Party Transactions

 

Effective January 1, 2013, the Company agreed to an annual compensation of $150,000 for its CEO, Mr. Michael Friedman (resigned March 20, 2015, re-appointed November 4, 2015) and resigned December 11, 2018. Effective March 20, 2015, Mr. Justin Braune was named CEO and President. Mr. Braune also was appointed to the Board of Directors. The Company agreed to an annual compensation of $100,000 for Mr. Braune in his role of CEO and Director of the Company and to issue Mr. Braune 75,000 shares of restricted common stock. Mr. Braune resigned from the board of directors and as CEO on November 4, 2015, and agreed to cancel the 75,000 shares in his letter of resignation. The Company also initially issued Mr. Braune 62,500 shares of common stock on October 13, 2015. On October 16, 2015, Mr. Braune advised the Company’s transfer agent at the time to cancel the shares. 

  

For the three months ended March 31, 2019 and 2018, the Company recorded expenses to Mr. Friedman of $37,500 and $37,500, respectively. For the three months ended March 31, 2019, $37,500 is included in Management Fees in the condensed consolidated statements of operations, included herein. As of March 31, 2019, and December 31, 2018, the Company owed Mr. Friedman $20,425 and $1,283, respectively, and is included in due to related party on the Company’s condensed consolidated balance sheet. On June 25, 2018, the Company issued 1,700,000 shares to Mr. Friedman. The Company recorded an expense of $22,950 (based on the market price of the Company’s common stock of $2.70 per share).

 

On October 5, 2017, the Company agreed to lease from Mr. Friedman, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) unique guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. For the three months ended March 31, 2019, and 2018, the Company paid and recorded $19,000 and $16,000, respectively, of expense, included in leased property expense, related party in the condensed consolidated statements of operations, included herein. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. For the three months ended March 31, 2019 and 2018, the Company has incurred $0 and $25,000 of renovation expense..

  

For the three months ended March 31, 2019, the Company expensed $5,000 to Mrs. Friedman for administrative fees.

 

For the three months ended March 31, 2019, the Company paid $19,500 for the three months ended March 31, 2018, respectively, for investor relations services to a company controlled by Mr. Friedman.