RELATED PARTY TRANSACTIONS

9 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5 - RELATED PARTY TRANSACTIONS

Related Party agreements and fees

For the three and nine months ended June 30, 2023, and 2022, the Company recorded expenses to related parties in the following amounts:

	Three months ended June 30,				Nine months ended June 30,
Description	2023		2022		2023		2022
CEO-Management fees	$	45,000	$	60,000	$	150,000	$	263,000
Chief Technology Officer (CTO)		-		60,000		105,000		263,000
Chief Administration Officer (CAO), through January 31, 2023		-		45,000		55,000		210,000
Chief Operating Officer (COO)		30,000		-		50,000		-
Stock-based compensation expense, officers		339,008		39,063		431,755		117,189
Office rent and expenses		-		12,869		25,737		41,889
Total	$	414,008	$	216,932	$	817,492	$	895,078

Effective June 1, 2021, the Company increased the monthly fee paid to its’ CEO and CTO, from $12,000 to $15,000, respectively. On January 1, 2022, the Company increased the monthly fee to $18,000 for the CEO and CTO, respectively, and on February 1, 2022, the monthly fee for the CEO and CTO was increased to $20,000. Effective January 1, 2023, the monthly fee for the CEO and CTO was reduced to $15,000. Effective April 1, 2023, the Company was no longer compensating the CTO and did not incur any additional office rent and expenses. For the nine months ended June 30, 2022, the Company also recorded bonus expenses of $100,000, $100,000, and $90,000 for the CEO, CTO and CAO, respectively. Included in the CAO’s compensation for the three and nine months ended June 30, 2022, is the amortization of stock-based compensation expense of $39,063 and $117,189, respectively.

Effective February 1, 2023, the Company entered a Consulting Executive Officer Agreement with a three- year term to an entity to provide the services of a Chief Operating Officer (the “COO”) of the Company. Pursuant to the agreement, the Company agreed to a monthly fee of $10,000, and the issuance of 250,000 shares per month, to be certificated semi-annually. Additionally, the Company granted an option to purchase 10,000,000 shares of the Company’s common stock at $0.02 per share with an expiry date of July 1, 2025 (the CYCA Option”). The CYCA option vests at the rate of 25% beginning on the first six-month anniversary of the agreement, as well as a warrant to purchase 250,000 shares of the Reticulate Micro common stock the Company owns (the “RM Warrant”). The RM warrant has an exercise price of $1.00 per share and an expiry date of July 1, 2025. For the three and nine months ended June 30, 2023, the Company recorded an expense of $33,675 and $56,200 related to the 250,000 shares per month. The Company valued the CYCA Option at $639,543 based on the Black-Scholes option pricing method and will be amortized through the term of the agreement, and accordingly, $53,295, and $88,825 is included in stock-based compensation expense for the three and nine months ended June 30, 2023. The Company valued the RM Warrant at $624,458 based on the Black-Scholes option pricing method and will be amortized through the term of the agreement, and accordingly, $52,038, and $86,730 is included in stock-based compensation expense for the three and nine months ended June 30, 2023. On May 11, 2023, the Company issued 5,000,000 shares to the Company’s COO as a bonus pursuant to their Consulting Agreement. The Company valued the shares at $0.04 per share and included stock-based compensation expense-related party of $200,000 for the three and nine months ended June 30, 2023.

On October 25, 2020, the Company entered a sublease with its CTO, whereby the Company agreed to an annual lease payment of $50,000. On October 26, 2021, renewed the lease for an additional year for $3,500 per month, and on October 26, 2022, the lease was renewed on a month-to-month basis. Included in office rent for the nine months ended June 30, 2023, is $21,000, and $10,500 and $35,663, for the three and nine months ended June 30, 2022, respectively.

Accounts payable, related parties

As of June 30, 2023, and September 30, 2022, the Company owes $458,453 and $180,407 respectively to related parties as follows:

	June 30, 2023		September 30, 2022
Management fees, Chief Executive Officer (CEO)	$	100,000	$	30,000
Bonus, CEO		70,000		100,000
Management fees, CTO		30,000		-
Stock payable, COO		56,200		-
Option expense		175,556
Bonus and accounts payable		26,697		50,407
Total	$	458,453	$	180,407