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Related Party Transactions
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Note 3. Related Party Transactions

As of September 30, 2018 and December 31, 2017, notes payable to related parties totaled $169,828 and $268,328, respectively. These amounts are owed to Douglas Beplate, our Chief Executive Officer. During the nine months ended September 30, 2018 the Company repaid a net amount of $128,500 of the outstanding notes payable and he gave a personal vehicle to a scientific advisor of the Company valued at $30,000 in lieu of the Company paying travel expenses and consulting expenses. These loans were for operating expenses of the Company, are due on demand and have no interest rate.

 

Per his employment agreement, he receives a monthly salary of $15,000 per month. During the year ended December 31, 2017, he received $93,500 of compensation and the remaining balance of $86,500 was recorded as accrued liabilities – related party on the balance sheet. He received $135,000 in compensation during the period ended September 30, 3018 and as of September 30, 2018, $86,500 remains owed to Mr. Beplate.

 

During the nine months ended September 30, 2018, the Company issued 1,600,000 shares to Nate Knight who is the Chief Financial Officer of the Company, 500,000 shares issued to the office administrator, who is a person affiliated with the Company’s CEO and 5,000,000 shares to our Chief Operating Officer. These shares have a fair market value of $2,289,000 and were placed in escrow and will be released when a change of control occurs. Management is unable to determine when a change of control will occur and $0 has been expensed as of September 30, 2018.

 

The Company by board resolution approved an executive compensation stock bonus package for Mr. Beplate such that upon the sale of all or substantially all of the assets of the Company or other change in control or merger transaction in which the Company is involved, or in the event that no such transaction occurs by December 31, 2019, Mr. Beplate shall receive an amount equal to 15% post issuance of the then outstanding shares of the Company's common stock on a fully diluted basis. It is intended that the board approved stock bonus package will be in lieu of the 5% stock bonus that Mr. Beplate is already entitled to in the event of a sale of the Company’s assets or change in control or merger transaction per his employment agreement.