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Related Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 9. Related Party Transactions

 

Mr. Saltz, who is a member of our Board of Directors, is also Chairman of the Board of Directors of TEC, as well as a majority stockholder of TEC. The Company has entered into a Co-Venture Agreement with TEC as disclosed in Note 8. In addition, the Company owns 560,000 shares of TEC common stock representing approximately 5.8% of the issued and outstanding shares of TEC common stock. The Company recognized $32,795 and $427,433 for license fees (royalties) for the three months ended June 30, 2019 and 2018, respectively, pursuant to the terms of the Co-Venture Agreement. The Company recognized $72,432 and $473,401 for license fees (royalties) for the six months ended June 30, 2019 and 2018, respectively, pursuant to the terms of the Co-Venture Agreement. As of June 30, 2019 and December 31, 2018, TEC had accounts receivable balances outstanding of $22,464 and $16,743, respectively.

 

Mr. Richardson, who is a member of our Board of Directors, is also acting CEO of Natural Point, Inc. (“Natural Point”), a vendor of the Company. For the three months ended June 30, 2019 and 2018, the Company purchased specialized equipment from Natural Point in the amount of $17,733 and $34,865, respectively. For the six months ended June 30, 2019 and 2018, the Company purchased specialized equipment from Natural Point in the amount of $56,084 and $87193, respectively. As of June 30, 2019 and December 31, 2018, the Company had a prepaid balance outstanding with Natural Point of $1,020.