Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 10 – RELATED PARTY TRANSACTIONS

Board fees paid by the Company, including stock-based compensation, for the three month periods ended March 31, 2018 and 2017, totaled $36,450 and $28,795, respectively, and are included in general and administrative expenses in the accompanying consolidated statements of operations.

The Company has engaged a related-party advertising company whose president is a member of the Board of Directors of the Company.  Amounts paid for services are included in marketing and selling expense in the accompanying consolidated statements of operations.  Total fees paid for the three month periods ended March 31, 2018 and 2017 were $4,000 and $8,650, respectively.

The Company has engaged a related-party law firm (a principal of that firm owns shares in the Company) to provide legal services. Legal fees paid to this firm are included in general and administrative expenses in the accompanying consolidated statements of operations for the three month periods ended March 31, 2018 and 2017 and totaled $9,998 and $9,000, respectively.  

Interest expense on all related-party notes payable for the three month periods ended March 31, 2018 and 2017 was $16,599 and $11,312, respectively.

Effective August 1, 2016, the Company entered into a management services with a company owned by the former Chief Executive Officer of Magma.  The agreement calls for payments of $180,000 per year for the first two years paid in monthly installments.  In year three, the amount is reduced to $37,500 for the year paid in monthly installments.  Additionally, the Company granted 30,000 options in conjunction with execution of this agreement.  Payments for the three month periods ended March 31, 2018 and 2017 were $45,000 and $45,000, respectively