NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS Related Party agreements and fees For the three and nine months ended June 30, 2022, and 2021, the Company recorded expenses to related parties in the following amounts: Three months ended June 30, Nine months ended June 30, Description 2022 2021 2022 2021 CEO-Management fees $ 60,000 $ 39,000 $ 263,000 $ 111,000 Chief Technology Officer (CTO) 60,000 61,584 263,000 133,584 Chief Administration Officer (CAO) 45,000 30,000 210,000 90,000 Stock-based compensation expense, officers 39,063 38,992 117,189 117,118 Office rent and expenses 12,869 18,415 41,889 39,250 Total $ 216,932 $ 187,991 $ 895,078 $ 490,952 Effective June 1, 2021, the Company increased the monthly fee paid to its’ CEO and CTO, from $12,000 to $15,000, respectively. On January 1, 2022, the Company increased the monthly fee to $18,000 for the CEO and CTO, respectively, and on February 1, 2022, the monthly fee for the CEO and CTO was increased to $20,000. For the three and nine months ended June 30, 2022, and the company recorded expenses of $60,000 and $163,000, respectively, each for the CEO and CTO. Of the CEO expenses, $30,000 is included in accounts payable, related parties on the balance sheet included herein. For the nine months ended June 30, 2022, the Company also recorded bonus expenses of $100,000, $100,000 and $90,000 for the CEO, CTO and CAO, respectively. The CEO’s bonus is included in accounts payable, related party on the balance sheet included herein. For the three and nine months ended June 30, 2021, the Company expensed $39,000 and $111,000, respectively to the CEO and $61,584 and $133,584, respectively, for the CTO, and $30,000 and $90,000 to its CAO, respectively. Amortization of stock-based compensation expense of $39,063 and $117,189 was recorded for the three and nine months ended June 30, 2022, respectively, and $38,992 and $117,118 for the three and nine months ended June 30,2021, respectively. On October 25, 2020, the Company entered into a sublease with its CTO, whereby the Company agreed to an annual lease payment of $50,000. For the nine months ended June 30, 2022, the Company expensed $4,163 and for the three and nine months ended June 30, 2021, $12,501 and $33,336, respectively, to rent expense pursuant to this sublease. On June 1, 2021, agreed to pay an additional $3,500 per month to the CTO for additional space, and for the three and nine months ended June 30, 2022, $10,500 and $31,500, respectively, and $3,500 for the three and nine months ended June30, 2021,respectively, is included in rent expense. Accounts payable, related parties As of June 30, 2022, and September 30, 2021, the Company owes $141,732 and $12,551, respectively to related parties as follows: June 30, 2022 September 30, 2021 Management fees, Chief Executive Officer (CEO) $ 30,000 $ - Bonus, CEO 100,000 - Accounts payable, CTO 11,732 12,551 Total $ 141,732 $ 12,551 |