RELATED PARTY TRANSACTIONS |
3 Months Ended |
|---|---|
Mar. 31, 2023 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 11 - RELATED PARTY TRANSACTIONS
Officers and Directors
Per Steven Rotman’s Employment agreement dated July 22, 2019, as amended, he is to be paid $125,000 per year in cash, $10,417 per month in shares based on a 20-day average price at a 50% discount to market, $5,000 per month in cash for expenses as well as access to a Company provided vehicle and health and life insurance. During the three months ended March 31, 2023, the Company expensed approximately $112,000 related to this employment agreement. As of March 31, 2023, the Company had a stock subscription payable balance of $682,225, or approximately shares to be issued in the future and $198,155 of reimbursable expenses payable and $116,403 of unpaid salary related to this party.
The Board of Directors authorized their board fees for 2021 be paid in common stock of the Company. Included in stock subscription payable at March 31, 2023 and December 31, 2022 is shares valued at $, of which shares valued at $ is included in Steven Rotman’s balance above.
Blue Oar Consulting, Inc.
This entity is owned by Gregory Rotman, who is the son of the Company’s CEO, Steven Rotman. Blue Oar provides business consulting services to the Company. In exchange for such services, the Company has entered into a consulting agreement with the related party entity.
Per the consulting agreement, Blue Oar is to be paid $15,000 per month in cash for expenses, and $12,500 per month to be paid in shares based on a 20-day average at a 50% discount to market. During the three months ended March 31, 2023, the Company expensed approximately $121,000 related to the consulting agreement. As of March 31, 2023, the Company had a stock subscription payable balance of $705,672, or approximately shares.
Related Party Advances
As of March 31, 2023, Gregory Rotman and Steven Rotman advanced the Company funds totaling $266,170 and $30,225, respectively. The advances are due on demand as repayment terms have not yet been finalized.
Designcenters.com
This entity is owned by Jamie Rotman, who is the daughter of the Company’s CEO, Steven Rotman. Designcenters.com (“Design”) provided bookkeeping and management services to the Company through July 2019. In exchange for such services, the Company had entered into a consulting agreement with the related party entity. As of March 31, 2023, the Company had a stock subscription payable balance of $42,000, for approximately shares related to this party for services incurred and expensed in 2019.
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