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Related Party Transactions

6 Months Ended

Jun. 30, 2019

NOTE 5 – RELATED PARTY TRANSACTIONS

The Company has had extensive dealings with related parties including those in which our Chief Executive Officer holds a significant ownership interest as well as an executive position during the six months ended June 30, 2019 and year ended December 31, 2018. Due to our operational losses, the Company has relied to a large extent on funding received from Next Communications, Inc., an organization in which the Company's Chief Executive Officer holds a controlling equity interest and an executive position. During the first calendar quarter of 2017, Next Communications, Inc. filed for bankruptcy protection. As a result, the related party payable is being handled by a court appointed trustee as an asset of Next Communications, Inc. and the Company may be compelled to repay the amounts due. On January 29, 2019, the United States Bankruptcy Court Southern District of Florida Miami Division approved a Plan of Reorganization for Next Communications, Inc., whereby Cuentas Inc. would pay $600 to a specific creditor in consideration for the forgiveness of the balance of the payable balance. On March 5, 2019, Cuentas paid $50 to the trust account of the specific creditor and on May 10, 2019, the Company paid $550 to the trust account of the specific creditor per the order and satisfied its obligation under the Approved Plan of the Reorganization for Next Communications, Inc., that was approved by the United States Bankruptcy Court Southern District of Florida Miami Division on January 29, 2019.

With the exception of the Company's purchase of a 9% interest in Next Cala, Inc. from a related party and the related party payable to Orlando Taddeo for the acquisition of Limecom as described below, amounts scheduled below as "due to related parties" and "due from related parties" have not had their terms, including amounts, collection or repayment terms or similar provisions memorialized in formalized written agreements.

Related party balances at June 30, 2019 and December 31, 2018 consisted of the following:

Due from related parties

	June 30, 2019		December 31, 2018
(a) Glocal Card Services		36		36
Total Due from related parties		36		36

Related party payables, net of discounts

	June 30, 2019		December 31, 2018
(b) Due to Next Communications, Inc. (current)	$	-	$	2,972
(c) Due to Asiya Communications SAPI de C.V. (current)		12		26
(d) Michael De Prado (current)		-		100
(e) Orlando Taddeo		-		2,613
(f) Next Cala 360 (current)		13		14
Total Due from related parties	$	25	$	5,725

(a)	Glocal Card Services is the Company's partner in the Glocal Joint Venture

(b)

Next Communication, Inc. is a corporation in which our Chief Executive Officer holds a controlling interest and serves as the Chief Executive Officer. During the first calendar quarter of 2017, Next Communications, Inc. filed for bankruptcy protection. As a result, the related party payable is being handled by a court appointed trustee as an asset of Next Communications, Inc. On January 29, 2019, the United States Bankruptcy Court Southern District of Florida Miami Division approved a Plan of Reorganization for Next Communications, Inc., whereby Cuentas Inc. would pay $600 until April 29, 2019 to a specific creditor in consideration for the forgiveness of the balance of the payable balance. On March 5, 2019, Cuentas paid $50 to the trust account of the specific creditor. On April 30, 2019, Cuentas received a Notice of Default (the "Notice") from Genovese Joblove Battista contending that a $550 Payment was in default due to the non-payment ordered by the United States Bankruptcy Court Southern District of Florida Miami Division and the potential reinstatement of a $1,678 Final Judgment in favor of 100 NWT if not cured by May 11, 2019. On May 10, 2019, the Company paid $550 to the trust account of the specific creditor per the order and satisfied its obligation under the Approved Plan of the Reorganization for Next Communications, Inc., that was approved by the United States Bankruptcy Court Southern District of Florida Miami Division on January 29, 2019.

(c)	Asiya Communications SAPI de C.V.is a telecommunications company organized under the laws of Mexico, in which the Company's Chief Executive Officer holds a substantial interest and is involved in active management.

(d)	Michael De Prado is the Company's President. On February 28, 2019, the Company issued 66,402 shares of its common stock to a settle this debt.

(e)	Amount due to Orlando Taddeo from the acquisition of Limecom.

(f)	Next Cala 360, is a Florida corporation established and managed by the Company's Chief Executive Officer.

During the six months period ended June 2019, the Company recorded interest expense of $67, using an interest rate equal to that on the outstanding convertible notes payable as imputed interest on the related party payable due to Next Communications. During the year ended December 31, 2018, the Company recorded interest expense of $237 using an interest rate equal to that on the outstanding convertible notes as imputed interest on the related party payable due to Next Communications. The interest was immediately forgiven by the related party and recorded to additional paid in capital.

Revenues (Related Party)

The Company generated revenues from related parties of $0 and $11,189 during the six months ended June 30, 2019 and 2018 as itemized below:

	For the Six Months Ended June 30,
	2019		2018
Next Communications, Inc.		-		5,813
Asiya Communications SAPI de C.V.		-		5,376
Total		-		11,189

The Company generated revenues from related parties of $0 and $8,941 during the three months ended June 30, 2019 and 2018 as itemized below:

	For the Three Months Ended June 30,
	2019		2018
Next Communications, Inc.		-		4,688
Asiya Communications SAPI de C.V.		-		4,253
Total		-		8,941