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Related Party Transaction
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTION

NOTE 9 – RELATED PARTY TRANSACTION

 

Convertible notes payable – related party

 

On January 9, 2017, the Company issued a convertible debenture (the “McLaren Debenture”) in the principal amount of $20,000 in favor of Bryan McLaren, the Company’s Chief Executive Officer, President, Chief Financial Officer, and a member of the Company’s Board of Directors, in exchange for cash from Mr. McLaren of $20,000. The McLaren Debenture accrued interest at the rate of 6% per annum payable quarterly by the 1st of each quarter and matured on January 9, 2022. Pursuant to the terms of the McLaren Debenture, Mr. McLaren was entitled to convert all or a portion of the principal balance and all accrued and unpaid interest due under this McLaren Debenture into shares of the Company’s common stock at a conversion price of $5.00 per share.

 

As of December 31, 2021 and 2020, the principal balance due under the McLaren Debenture was $20,000.

 

As of December 31, 2021 and 2020, accrued interest payable due under the McLaren Debenture was $5,400 and $4,200, respectively, which is included in accrued expenses – related party on the accompanying consolidated balance sheets.

 

For the years ended December 31, 2021 and 2020, interest expense – related party amounted to $1,200.

 

On January 7, 2022, the Company repaid this debt and all accrued and unpaid interest due.

 

Indemnification agreements

 

On August 23, 2021, the Company entered into indemnification agreements with each of its directors and executive officers. In general, these indemnification agreements require the Company to indemnify a director and officer to the fullest extent permitted by law against liabilities that may arise in connection with that director’s service as a director and officer for the Company. Additionally, the Company shall advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. In August 2021, the Company did not renew its officers and directors insurance.