Note 4 – Related Party Transactions

Related Parties

Related parties with whom the Company had transactions are:

Related Parties		Relationship

Anil R. Diwan		Chairman, President, significant stockholder and Director

Eugene Seymour		CEO, significant stockholder, Director

TheraCour Pharma, Inc. (“TheraCour”)		An entity owned and controlled by a significant stockholder

Inno-Haven, LLC (“Inno-Haven”)		An entity owned and controlled by a significant stockholder

Milton Boniuk, MD		Director and significant stockholder

Property and Equipment

	For the Year Ended
	June 30, 2017		June 30, 2016		June 30, 2015
The Company acquired 1 Controls Drive, Shelton, Connecticut from Inno-Haven	$	-	$	-	$	4,222,549

During the reporting period, TheraCour acquired property and equipment on behalf of the Company from third party vendors and sold such property and equipment at cost, to the Company	$	33,147	$	39,938	$	255,019

Accounts Payable Related Party

	As of
	June 30, 2017		June 30, 2016
Pursuant to an Exclusive License Agreement we entered into with TheraCour, the Company was granted exclusive licenses in perpetuity for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. In consideration for obtaining this exclusive license, we agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of direct costs as a development fee and such development fees shall be due and payable in periodic installments as billed, (2) we will pay $2,000 or actual costs each month, whichever is higher for other general and administrative expenses incurred by TheraCour on our behalf. Accounts payable due TheraCour on the reporting date was	$	340,695	$	767,454

Research and Development Costs Paid to Related Parties

	For the Year Ended
	June 30, 2017		June 30, 2016		June 30, 2015
Development fees and other costs charged by and paid to TheraCour pursuant to exclusive License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. No royalties are due TheraCour from the Company at June 30, 2017, 2016 and 2015	$	3,368,919	$	3,731,498	$	2,403,126

Debentures Payable to a Director

	As of
	June 30, 2017		June 30, 2016

Series B Convertible Debentures - Milton Boniuk	$	-	$	4,000,000

Series C Convertible Debentures - Milton Boniuk		5,000,000		5,000,000

Total Debentures Payable to a Director	$	5,000,000	$	9,000,000

	As of
Debenture Interest Payable to a Director	June 30, 2017		June 30, 2016
Coupon interest payable on $5,000,000 Series C Convertible Debentures and deferred. The deferred interest is paid out quarterly over the remaining term of the debenture commencing September 30, 2015:
Deferred interest payable - short-term	$	166,667	$	166,667
Deferred interest payable - long-term		-		166,667
Total Debenture Interest Payable to a Director	$	166,667	$	333,334

Stock and warrant interest paid in kind on Series B Convertible Debentures to Dr. Milton Boniuk and recognized at fair value was $0, $37,410 and $1,001,532 for the years ended June 30, 2017, 2016, and 2015, respectively.

Coupon interest expense on the Series B Debentures to two holders controlled by Dr. Milton Boniuk for the years ended June 30, 2017, 2016 and 2015 was $187,178, $320,000 and $320,000, respectively.

Coupon interest expense on the Series C Debenture to Dr. Milton Boniuk for the years ended June 30, 2017, 2016 and 2015 was $500,000, $500,000 and $500,000 respectively. For the year ended June 30, 2017, Dr. Boniuk elected to receive $375,000 of such interest in restricted common shares of the Company calculated at the average of the open and close market value of the Company’s stock on the due date of such interest resulting in the issuance of 317,987 shares of the Company’s $0.001 par value common stock. Dr. Boniuk also elected to receive $125,000 of the deferred interest due under the debenture in common stock of the Company calculated at the average of the open and close market value of the Company’s stock on the due date of such deferred interest resulting in the issuance of 105,965 shares of the Company’s $0.001 par value common stock.