Note 6 - Related Party Transactions | NOTE 6 - RELATED PARTY TRANSACTIONS Upon incorporation, the founder of the Company, who is also the CEO and Chairman, purchased 500,00 shares of the companys common stock for a total of $500 at a per share cash price of $0.001. On February 18, 2014 Red Rock Servicing purchased 1,000,000 shares of the companys common stock for a total $1,000 at a per share cash price of $0.001. In July 2014, the CEO consulting agreement was extended to May 28, 2015 and extended again. Some provisions are to defer or pay the CEO for his consulting services and health benefits depending on how and when financing can be secured. In the third quarter 2014, Rudy Campidonica, CEO, paid two invoices to two vendors for legal fees on behalf of the company totaling $5,526.00 with the promise by the company to reimburse him by year end; this was done on January 2, 2015. The Company has agreed to the terms of a technology assignment agreement with an individual who is the owner of two patent applications which will be treated as purchased intangible assets upon its completion. The technology assignment agreement was originally negotiated by an entity owned by the CEO of the Company, which is a related party. As consideration for negotiating the agreement, and in concert with the Company entering into the technology assignment with the patent application holder, the Company simultaneously entered into a release agreement with the entity owned by the CEO of the Company which released all rights and claims the entity owned by the CEO had to the patent applications. As consideration for the release all rights and claims, the entity owned by the CEO of the company received a non-refundable deposit of $7,500. Additionally, if the Company is able to successfully execute the technology assignments agreement, which is to be completed on or before July 31, 2014, the entity owned by the CEO will receive $67,500 within five business days of the execution of the technology assignment agreement. This agreement was extended to pay the entity $17,500 in the event the company closes any new round of debt and/or equity financing of $200,000 or more. Additionally, the company and the entity agreed to extend the July 31, 2014 date to May 28, 2015 and further extended to June 30.2016. The entity owned by the CEO of the Company will also receive a royalty and lump-sum payment on the future commercial product sales similar to the seller of the intellectual property. The initial payment of $7,500 was satisfied in January 2014 and is presented as a related party payable on the balance sheet at December 31, 2013. During January 2014 the company completed the following related party transactions which were classified as expense by the company. In July 2014, the consulting agreements for Soriano, Tuthill, Jason Campidonica, Red Rock Servicing, Langdon, and OHara were extended from January 31, 2015 to May 28, 2015, with provisions to pay the consultants in stock in the event that the company has not completed a Qualified Round of Financing of $1,500,000 or more by January 31, 2015; these provisions were not exercised by the company. The consulting agreements were extended until June 30, 2016. Michael Soriano did not fulfill his remaining consulting agreement beginning January 2015. Thus, 5,000,000 shares in Sorianos name were redistributed to: Rudy Campidona (3,700,000 shares), Steve Tuthill (550,000 shares), Harry Langdon (550,000 shares) and Jason Campidonica (200,000 shares). Consulting Shares Authorized Michael Soriano 2,450,000 Steve Tuthill 8,000,000 Jason Campidonica 1,000,000 Red Rock Servicing 6,450,000 John Rosati 150,000 Michael Hensley 150,000 J. Scott Buono 50,000 Harry Tachian 50,000 Rudy Campidonica 44,200,000 Harry L Langdon 8,000,000 Mary O'Hara 3,000,000 |