Related Party Balances and Transactions

6 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Related Party Balances and Transactions

Note 4 - Related Party Balances and Transactions

The Seller and current owner of RxCompound and Peaks Curative is Mario Tabraue, the brother of the Company’s CEO, Nickolas S. Tabraue. Although strictly speaking, the acquisition was negotiated in an arms-length transaction and both the Company and Mario Tabraue had separate counsel, each of whom contributed to the acquisition agreement. The Company’s Board of Directors, the Company’s Management and the Successor Receiver all concluded that the purchase price, consisting of 3 million shares of ETST common stock and $300,000, was a fair and reasonable purchase price and that, given the various liabilities that ETST may exit receivership owing and the various legacy issues and the associated risks, the value the two acquisition targets represent is in all likelihood substantially greater than the purchase price would otherwise suggest, although there is not an accurate method to determine its value to a company that is in the position that this Company finds itself. Subsequently to the period ending September 30, 2022, the Company and the sellers amended the Purchase Agreement consummating the merger, (see Note 8, Subsequent Events).