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Related Party Transactions
9 Months Ended
Sep. 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 $28,561 and $41,038 for license fees (royalties) for the three months ended September 30, 2019 and 2018, respectively, pursuant to the terms of the Co-Venture Agreement. The Company recognized $100,993 and $512,545 for license fees (royalties) for the nine months ended September 30, 2019 and 2018, respectively, pursuant to the terms of the Co-Venture Agreement. As of September 30, 2019 and December 31, 2018, the Company had accounts receivable balances outstanding from TEC of $8,251 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 September 30, 2019 and 2018, the Company purchased specialized equipment from Natural Point in the amount of $75,803 and $700, respectively. For the nine months ended September 30, 2019 and 2018, the Company purchased specialized equipment from Natural Point in the amount of $131,887 and $122,758, respectively. As of September 30, 2019, the Company had accounts payable balance outstanding of $17,433 and as of December 31, 2018, the Company had a prepaid balance outstanding of $1,020 with Natural Point, Inc.