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Commitments
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments

Note 12: COMMITMENTS

 

The Company was committed under an operating lease for its premises, under which it made monthly payments of $7,500 plus 100% of operating expenses, until the lease expired June 30, 2018. On September 1, 2018, the Company entered a new operating lease with an entity owned by a related party (see Note 10) calling for monthly payments of $8,641 plus 100% of operating expenses, for a term expiring on August 31, 2019. On September 1, 2019, the lease of the Company’s premises was amended such that it expires on August 31, 2020, and the rent thereunder was increased to $8,967 per month.

 

In conjunction with the Asset Purchase Agreement referred to in Note 4, the Company agreed to purchase a minimum of 30,000 units of product per month, subject to an increase of 1% of the agreed purchase on each anniversary of said agreement. The minimum purchase will increase by 1% every anniversary of its effective date. The agreement expires on April 30, 2031.