Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.10.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 10 – RELATED PARTY TRANSACTIONS

Board of Directors fees paid by the Company, including stock-based compensation was $64,018 and $37,133 , for the three month periods ended June 30, 2018 and 2017, respectively and $100,468 and $70,846, for the six month periods ended June 30, 2018 and 2017, respectively.  Such amounts 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 were $12,000 and $15,900 for the three month periods ended June 30, 2018 and 2017, respectively and $16,000 and $24,550, for the six month periods ended June 30, 2018 and 2017, 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 were $32,093 and $56,166 for the three month periods ended June 30, 2018 and 2017, respectively and $42,090 and $65,165, for the six month periods ended June 30, 2018 and 2017, respectively.  Such fees are included in general and administrative expenses in the accompanying consolidated statements of operations.  

The Company has an agreement with an employee to provide additional services for website site hosting and certain other technology related matters.  Fees paid to this employee were $3,627 and $0, for the three month periods ended June 30, 2018 and 2017, respectively and $6,491 and $0, for the six month periods ended June 30, 2018 and 2017, respectively.

Interest expense on all related-party notes payable for the three month periods ended June 30, 2018 and 2017 was $0 and $7,008, respectively and $16,599 and $14,912 for the six month periods ended June 30, 2018 and 2017, respectively.

Effective August 1, 2016, the Company entered into a management services agreement 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 were $45,000 and $45,000 for the three month periods ended June 30, 2018 and 2017, respectively and were $90,000 and $90,000, for the six month periods ended June 30, 2018 and 2017, respectively.