12 .	Related Party Transactions

Except as disclosed herein, the Company has

not

entered into any material transactions or series of similar transactions with any director, executive officer or any security holder owning

or more of common stock since

July 1, 2017.

AEON leases its facilities from Centennial Properties of Georgia, LLC under a lease agreement commencing

April 2014,

as amended

January 20, 2016.

The lease provides for a term of

years expiring

March 2026.

The lease payments range from

$46,500

to a maximum of

$60,000.

In connection with the lease agreement, as security for its rent and other obligations under the lease, AEON has provided to the landlord a

first

priority lien and security interest in substantially all its assets. The landlord under the lease is Centennial Properties of Georgia, LLC a Georgia limited liability company. Centennial is owned by Hanif Roshan, Shawn Desai, Pyarali Roy and Sohail Ali, all of whom were AEON members and received common stock in the Company as a result of the AEON Acquisition. Mr. Roshan serves as the Chairman and CEO of the Company. Mr. Desai is the Chief Technology Officer of AEON. Mr. Roy is the Chief Strategy Officer of AEON. Related party rent expense for the

three

months ending

September 2018

and

2017

was approximately

$77,000

and

$144,000,

respectively.

The Company holds certain related party notes payable to certain shareholders and its Chief Executive Officer, as detailed in Note

Interest expense relating to these notes amounted to approximately

$49,000

and

$32,000,

for the

three

months ended

September 30, 2018

and

2017,

respectively. The Company restructured the Senior Notes held by Mr. Roshan and Optimum Ventures and exchanges the Senior Notes held by them for senior secured Grid Notes.

The Company entered into a lease agreement with Hanif A. ("Sonny") Roshan (the "landlord") for a residential premises at

5455

Golf View Drive, Braselton, Georgia

30517

for a term of

one

year beginning on

January 1, 2018

and ending on

December 31, 2018

for a fixed rent in monthly installments of

$7,500

due and payable by the

first

day of each month. The lease is renewable with a

increase in rent for each renewal. The tenant is responsible for utilities and insurance with the landlord responsible for maintenance and taxes on the premises. Rent expense was

$22,500

and

$22,500

for the

three

months ended

September 30, 2018

and

2017.

Certain of the Company's affiliates, including members of its senior management and board, as well as their respective family members and other affiliates, have relationships and agreements among themselves as well as with the Company and its affiliates, that create the potential for both real, as well as perceived, conflicts of interest. These include certain with which the Company does business. The Company does business with Kemah Palms, an entity that is majority owned by the Company's Chairman and CEO, Hanif Roshan. AEON generated approximately

$10,000

in revenue from Kemah Palms in fiscal

2018.

September 18, 2018,

the Company and its wholly-owned subsidiary, Peachstate Health Management LLC, entered into a shared services agreement with Centennial Properties, LLC, an entity affiliated with the Company’s chief executive officer and which is the owner of the premises in which the Company conducts its operations. Pursuant to this agreement, in consideration of various services and accommodations provided by Centennial Properties, the Company and Peachstate Health Management agreed to provide, or cause to be provided, certain operational and administrative support services to Centennial Properties and certain other related entities. Under this agreement, in

event shall any employee of the Company or Peachstate Health Management be required to devote more than

10%

of such employee’s business time per week to the provision of services to Centennial Properties. The shared services agreement has a term of

three

years.

An entity affiliated with the Company’s Chief Executive Officer extended a personal loan of

$500,000

to an entity affiliated with a distributor and business consultant to the Company. The borrower has agreed to repay the loan by assigning a percentage of the net proceeds received by the affiliated distributor as commissions under its distribution agreement.