RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

13. RELATED PARTY TRANSACTIONS

The Company acts as a product formulator and contract manufacturer for Avini Health. The Company’s chief executive officer is an owner of Avini Health and is its chief scientific officer.

Commencing in May 2022, the Company sublets a portion of its space to Avini Health under a one-year sublease for a monthly rent of $5,000, with the first three months rent-free. During the three and nine months ended September 30, 2022, the Company recorded rental income of $10,000 which is included net of selling, general and administrative expense in the accompanying Condensed Consolidated Statements of Operations.

As of September 30, 2022 and December 31, 2021, we had the following related party balances:

	September 30,		December 31,
	2022		2021
Deferred revenue to a related party	$	111,011	$	-
Accrued interest to a related party		145,508		147,768

For the three and nine months ended September 30, 2022 and 2021, we had the following related party transactions

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022		2021
Net sales to a related party	$	84,580		$	-		$	154,966	$	-
Bad debt expense (recovery) - related party		(21,799	)		(35,000	)		-		38,000
Rental income from a related party		10,000			-			10,000		-
Interest expense to a related party		4,272			4,504			12,740		13,881