Related party activity

6 Months Ended

Sep. 30, 2016

Notes to Financial Statements

4. Related party activity

Revenues

For the three and six months ended September 30, 2016, and 2015, related party sales were $94,497 and $94,828, respectively, representing sales of 88% and 62%, respectively for each period. The party that accounted for $94,497 of revenues the three and six months ended September 30, 2016, was temporarily a related party based on the percentage of shares owned of the issued and outstanding common stock of the Company at the time of the sales. The party is no longer a related party. For the six months ended September 30, 2015, the Company recorded sales to three related party companies in the amounts of $125,682, $59,404 and $1,750, respectively. The sales of $1,750 were to a limited liability company controlled by the Company’s chief executive officer (“CEO”). Total related party revenues for the six months ended September 30, 2015 was $186,837

Notes payable

The Company issued multiple unsecured notes payable from June 27, 2015 to September 30, 2016, to the Company’s CEO, for amounts advanced to the Company, or paid by the CEO, on behalf of the Company, totaling $158,258. The notes carry interest at 10% per annum and are due on demand. As of September 30, 2016, and March 31, 2016, the principal balance of the notes was $106,500 and $105,000 (included in note payable related party in the balance sheets presented herein), and included in accrued interest related party is the accrued and unpaid interest as of September 30, 2016, and March 31, 2016, of $16,829 and $11,550, respectively. For the three and six months ended September 30, 2016, the Company recorded interest expense related party of $3,704 and $5,279, respectively.

Management Fees

For the three and six months ended September 30, 2016 and 2015, the Company recorded expenses to its officers the following amounts:

	Three months ended September 30,				Six months ended September 30,
	2016		2015		2016		2015
CEO	$	14,000	$	49,000	$	56,000	$	124,000
CFO		15,000		5,000		42,500		5,000
Total	$	29,000	$	54,000	$	98,500	$	129,000

Included in the CEO’s three and six months ended September 30, 2016, compensation is a credit of $28,000, whereby, the CEO agreed to reduce past amounts due. As of September 30, 2016, included in accounts payable - related party is $159,000 and $15,250, for amounts owed the Company’s CEO and CFO, respectively, for unpaid fees.