RELATED PARTY TRANSACTIONS

9 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 7 – RELATED PARTY TRANSACTIONS

The Company’s Chief Executive Officer (“CEO”), from time to time, has provided advances to the Company for its working capital purposes. The CEO had advanced funds to the Company totaling $11,494 and $20,595 as of December 31, 2024 and March 31, 2024, respectively, which is included in related party payables on the condensed consolidated balance sheet. The funds advanced are unsecured, non-interest bearing, and due on demand.

On December 1, 2020, the Company entered into an employment agreement with its CEO for a three-year term, for an annual compensation of $150,000 with a 10% annual increase in compensation effective October 1 of each year. The initial term of the employment agreement is automatically renewed for successive one-year periods unless either party gives ninety (90) calendar days written notice of nonrenewal prior to the expiration of the then-current term. The Company has recorded in general and administrative expenses compensation expense of $54,904 and $154,729 for the three months and nine months ended December 31, 2024, and $49,913 and $140,663 for the three months and nine months ended December 31, 2023, respectively. The total compensation payable to the CEO was $726,054 and $571,325, as of December 31, 2024 and March 31, 2024, respectively (Note 8).

Pursuant to the terms of MEI acquisition, the Company is obligated to pay to the sole stockholder of MEI a cash consideration of $500,000 upon closing of the transaction (Note 5). In addition, the Company entered into a consulting agreement with the sole stockholder, agreeing to pay monthly consulting fee of $16,000 for ongoing services upon close of MEI acquisition. The Company has recorded a consulting expense of $11,355 payable to the sole stockholder for the period ended December 31, 2024 which is included in related party payables on the condensed consolidated balance sheet. The total amount payable to the sole shareholder amounted to $511,355 as of December 31, 2024. The sole shareholder of MEI was appointed as a member of the Board of Directors of the Company upon consummation of the acquisition of MEI.

BLUEONE CARD, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

(Unaudited)