Note 5 – Related Party Transactions

On August 22, 2014, the Company entered into a one-year agreement to provide business development and corporate planning services to Bang Holdings Corporation (“Bang Holdings”), in which the Company’s Chairman of the Board has an indirect 19% interest. Bang Holdings shall pay the Company $150,000 over the term of the agreement. During the three and six months ended June 30, 2015, the Company recognized $19,500 and $39,000, respectively, of revenues related to the agreement. The Company did not recognize any revenues during the period from June 4, 2014 (inception) to June 30, 2014. Pursuant to the agreement, the Company received 500,000 shares of common stock of Bang Holdings as consideration for a $500 investment in cash recorded at cost. As of June 30, 2015, the Company and Bang Holdings have fully satisfied their professional service and payment obligations under the agreement, respectively. This agreement is due to expire on August 22, 2015.

During the three and six months ended June 30, 2015, $10,000 per month of cost of revenues ($30,000 and $60,000 during the three and six months ended June 30, 2015, respectively) was attributable to compensation earned by the Company’s Chairman of the Board in connection with services performed related to the above business development agreement. As of June 30, 2015 and December 31, 2014, $130,000 and $70,000, respectively, of compensation was unpaid and was included in accounts payable – related party on the condensed balance sheets.

During the three and six months ended June 30, 2015, the Company paid $5,000 per month ($15,000 and $30,000 during the three and six months ended June 30, 2015, respectively) to Balance Holdings LLC, an entity controlled by the Company’s Chairman of the Board, for rent and office services, which was included in general and administrative expenses – related party in the condensed statement of operations. As of June 30, 2015, $5,000 was unpaid and was included in accounts payable – related party on the condensed balance sheets.

During the six months ended June 30, 2015, the Company repaid $1,105 of short-term advances to entities controlled by the Company’s Chairman of the Board ($600 to The Farkas Group, Inc. and $550 to Balance Holdings LLC) to fund the Company’s early formation expenses. During the six months ended June 30, 2015, the Company’s Chairman of the Board provided the Company unsecured short-term advances aggregating $13,000. The advances earn interest at a rate of 8% per annum and are payable on demand. As of June 30, 2015 and December 31, 2014, there was $13,000 and $1,105 of short term advances outstanding.