RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS |
6 Months Ended | ||||||||||||
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Jun. 30, 2022 | |||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||
| RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS | NOTE 6 – RELATED PARTY ADVANCES AND OTHER INTERCOMPANY AGREEMENTS
Convertible Note and Due to Parent and Affiliates During the six months ended June 30, 2022 and during 2021, the Company had the availability, but not the contractual right to intercompany financing from the Parent and Affiliates in the form of either cash advances or borrowings under a convertible note (as discussed below).
The convertible notes balances were $1,937,768 and $289,029 at June 30, 2022 and December 31, 2021, respectively. The increase of $1,648,739 was mainly due to working capital contributions from the Parent.
Management Service Agreement In 2020, the Company entered into a management services agreement with a related party (related through common ownership). The Company is billed $25,000 quarterly. Effective February 1, 2022, the original management services agreement was amended to have the Company billed at $35,000 quarterly. While the agreement does not stipulate a specific maturity date, it can be terminated with 30 calendar days written notice by any party.
The related party provides the following services:
During the last three and six months ended June 30, 2022, the Company incurred $35,000 and $70,000 respectively under its agreement with Tekcapital Europe Ltd.
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