Related Party Transactions | NOTE 8 – Related Party Transactions During the year ended December 31, 2017, one hundred ten (110) gaming machines were sold respectively, to a company controlled by Mr. Paul Parliament, the Company’s chief executive officer, for a total of $770,000. The above mentioned sales were financed by a notes receivable in the amount of $342,000. The notes receivable accrue interest at 8% and mature in December 2017. Due to the uncertainty of repayment, the notes receivable of $342,000 were allowed for as a bad debt at December 31, 2017. See Note 6. The above mentioned sales were also paid for by reducing Mr. Parliaments’ note payable from the Company in the amount of $76,000. During the year ended December 31, 2017 the Company sold 20 gaming machines to Richard A. Kaiser Sr., the parent of the Director, Richard Kaiser for $133,500. During the year ended December 31, 2017, seventy-five (75) gaming machines were sold to a company controlled by Mr. Doug Brooks, a director of the Company, or a total of $525,000. During the year ended December 31, 2017 the sales reduced the note payable to Mr. Brooks in the amount of $209,000 and a note receivable was established in the amount of $76,000 accruing interest at 8%, maturing in December 2017. Due to the uncertainty of repayment, the note receivable of $76,000 was allowed for as a bad debt at December 31, 2017. See Note 6. During the year ended December 31, 2017, GameTouch LLC, a company owned by a major stockholder of Bravo sold equipment and collected the receipts of those sales on behalf of the Company in the amount of $154,000 including the $70,000 sale to Mr. Doug Brooks listed above. GameTouch LLC also received from the Company commissions in the amount of $187,150 and $95,950 for the years ended December 31, 2017 and 2016, respectively, related to any sales consummated by them. GameTouch warrants that they will maintain all necessary licenses and that the purchaser of machines has a one-time option to return machines purchased within 24 months from the date of signed agreement purchase. During the year ended December 31, 2017 the Company purchased 200 gaming machines from Centro de Entretenimiento y Diversion Mombacho S.A., a company owned by a major stockholder of Bravo $900,000 which was to be paid 50% in cash as a note payable and 50% as common stock. 441,176 and 321,429 shares of common stock were issued in April and May 2017 respectively, to pay the $450,000 due in connection with the agreement. During the year ended December 31, 2016, ninety (90) gaming machines were sold to a company controlled by Mr. Paul Parliament, the Company’s chief executive officer, or a total of $630,000. The sale was paid for through a reduction in the amount of $342,000 to a note payable to Mr. Parliament. The Company also sold 5 gaming machines to Richard A. Kaiser Sr., the parent of the Director, Richard Kaiser for $34,250. During the year ended December 31, 2016 GameTouch LLC a company owned by a major stockholder of Bravo sold equipment and collected the receipts of those sales on behalf of the company in the amount of $741,845, including those sales to related parties listed above. GameTouch LLC also received from the Company commissions in the amount of $95,950 for the year ended December 31, 2016 related to any sales consummated by them. GameTouch warrants that they will maintain all necessary licenses and that the purchaser of machines has a one-time option to return machines purchased within 24 months from the date of signed agreement purchase. During the year ended December 31, 2016 the Company purchased 150 gaming machines from Centro de Entretenimiento y Diversion Mombacho S.A., a related party for $675,000. 50% is to be paid in cash as a note payable and 50% as common stock. 41,666 shares of common stock were issued during the year ended December 31, 2016 to pay the $337,500 due in connection with the agreement. Directors Loans consist of the following at December 31, 2017 and December 31, 2016: December 31, 2017 2016 Douglas Brooks – 8% Interest, Matures October 2018 $ 265,834 441,719 Richard Kaiser – 8% Interest, Matures October 2018 109,472 99,136 Paul Parliament – 8% Interest, Matures October 2018 408,595 786,573 Total Directors Loans $ 783,901 $ 1,327,428 Interest expense for the years ended December 31, 2017 and 2016 was $139,357 and $57,134 respectively. Due to Related Parties consist of payments of Company expenses by the Company’s three (3) directors and related party, Julios Kosta. Amounts due were $64,929 and $71,179 at December 31, 2017 and 2016, respectively. Notes payable - related party consists of amounts due to Julios Kosta, and Martin Wolfe, both major stockholders of the company and Marsadi Parliament, related to director Paul Parliament. Mr. Kosta’s loan accrues interest at 8% and matures in October 2018. Notes payable to Julios Kosta were $480,881 and $435,759 at December 31, 2017 and 2016, respectively. Mr. Wolfe’s loans both accrue interest at 8% and mature in October and May 2018, respectively. Notes payable to Martin Wolfe were $20,247 and $211,408 at December 31, 2017 and 2016, respectively. Ms. Parliament’s loan was $125,000 and $-0- at December 31, 2017 and 2016, respectively, accrues interest at 8% and matures in December 2019. The Company utilizes the services of Yes International Inc., which is controlled by Mr. Richard Kaiser who is a member of the Board of Directors. Yes International provides all services at no cost except for press release wire services. For the year ended December 31, 2017 and 2016 the company paid press release wire services in the amount of $2,560 and $-0-, respectively. |