Note 5 – Related Party Transactions

The Company’s CEO earned $10,000 per month. The following compensation was recorded within general and administrative expenses – related parties on the statements of operations: $35,000 and $90,000 for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, $217,318 of compensation was unpaid and was included in accounts payable – related parties on the balance sheet.

For the nine months ended September 30, 2016 and 2015, the Company expensed $5,000 and $5,000, respectively, for rent and office services which are included in general and administrative expenses related party to Balance Holdings LLC, an entity controlled by the Company’s CEO. As of September 30, 2016, $5,000 was owed.

The Company billed $30,000 to a related company, 100% owned by the Company’s CEO. For administrative and accounting services. As of September 30, 2016, the $30,000 has not been paid.

During the nine months ended September 30, 2016, the Company’s CEO or related party provided the Company unsecured short-term advances aggregating $31,842. The advances earn interest at a rate of 8% per annum and are payable on demand. During the nine months ended September 30, 2016, the Company repaid an aggregate of $52,803 of short-term advances to the Company’s CEO and entities controlled by the Company’s CEO. For the nine months ended September 30, 2016, the company recorded $1,232 of interest expense. The outstanding balance as of September, 2016 was $659.

On September 30, 2016, the CEO loaned $120,000 to the Company at an interest rate of 10%, due on October 1, 2017. In addition, the Company issued 600,000 warrants at an execution price of $1.00 which expire on October 1, 2019. See Note 7

On May 4, 2016 the company began compensating its board member Aviv Hillo, $2,500 per month for his consulting and advisory services. The expense for the nine month period ended September 30, 2016 was $7,500 compared to $0 for the same period last year.

The Company has discontinued paying a related company $5,000 a month as rent on a month to month basis as of July 31, 2016. It has been recorded in general and administrative expenses-related parties on the statement of operations. The company on July 27, 2016 signed a sublease with entity partially owned by a related party to sub-lease approximately 2200 square feet 1691 Michigan Ave, Miami Beach, Fl. 33139, beginning August 1, 2016 and ending September 30, 2018 at a monthly base rental of $7,741 per month until July 31, 2017, $7,973 per month from August 1, 2017 to July 31, 2018, and $8,212 from August 1, 2018 to the sublease termination date. In addition to base rent, the company will have to pay 50% of the CAM charges as additional rent.