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 and, effective September 11, 2015, the Company’s Chief Executive Officer (“CEO”) has an indirect 19% interest. Bang Holdings shall pay the Company $150,000 over the term of the agreement. During the three and nine months ended September 30, 2015, the Company recognized $0 and $39,000, respectively, of revenues related to the agreement. During the three months ended September 30, 2014 and during the period from June 4, 2014 (inception) to September 30, 2014, the Company recognized $46,500 of revenues related to the agreement. 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. The agreement expired on August 22, 2015.

In connection with services performed related to the above business development agreement, the Company’s CEO earned $10,000 per month. The following compensation was recorded within general and administrative expenses - related parties on the condensed statements of operations: $30,000 and $90,000 during the three and nine months ended September 30, 2015, respectively, $40,000 during the three months ended September 30, 2014 and $40,000 during the period from June 4, 2014 (inception) to September 30, 2014. As of September 30, 2015, $156,500 of compensation was unpaid and was included in accounts payable – related parties on the condensed balance sheet.

During the three and nine months ended September 30, 2015, the Company paid $5,000 per month ($15,000 and $45,000 during the three and nine months ended September 30, 2015, respectively, and $15,000 and $20,000 during the three months ended September 30, 2014 and during the period from June 4, 2014 (inception) to September 30, 2014, respectively) to Balance Holdings LLC, an entity controlled by the Company’s CEO, for rent and office services, which was included in general and administrative expenses – related party in the condensed statement of operations. As of September 30, 2015, $20,000 was unpaid and was included in accounts payable – related parties on the condensed balance sheet.

During the nine months ended September 30, 2015, the Company’s CEO provided the Company unsecured short-term advances aggregating $37,340. The advances earn interest at a rate of 8% per annum and are payable on demand. During the nine months ended September 30, 2015, the Company repaid an aggregate of $38,325 of short-term advances to the Company’s CEO and entities controlled by the Company’s CEO ($37,220 to the Company’s CEO, $600 to The Farkas Group, Inc. and $550 to Balance Holdings LLC) to fund the Company’s early formation expenses. As of September 30, 2015, there was $120 of short term advances outstanding.