5. Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

5.Related Party Transactions

a)     As at September 30, 2016, the Company was owed $316,944 (December 31, 2015 - $5,000) from product sales revenue from a significant shareholder which is non-interest bearing, unsecured, and due on demand. This amount has been included in accounts receivable – related party.

b)     As at September 30, 2016, the Company owed $67,079 (December 31, 2015 - $25,150) to the President of the Company, which is non-interest bearing, unsecured, and due on demand.

c)     As at September 30, 2016, the Company owed $64,864 (December 31, 2015 - $22,998) to the Chief Financial Officer of the Company, which is non-interest bearing, unsecured, and due on demand.

d)     As at September 30, 2016, the Company recorded a liability for shares issuable of $1,126,513 (December 31, 2015 - $831,233) relating to 46,064,956 common shares to be issued to a significant shareholder pursuant to the acquisition agreement for the intangible assets. During the period ended September 30, 2016, the Company recorded $295,279 (December 31, 2015 – loss of $318,132) as a gain in the fair value of the shares issuable to the significant shareholder

e)     As at September 30, 2016, the Company owed $75,000 (December 31, 2015 - $75,000) to a significant shareholder for a loan payable. The loan is unsecured, non-interest bearing, and due on July 25, 2017.

f)      During the period ended September 30, 2016, the Company generated revenues from services of $354,444 (December 31, 2015 - $837,100) from a significant shareholder.

g)     During the period ended September 30, 2016, the Company incurred payroll expense of $394,510 (December 31, 2015 - $267,495) to management and officers of the Company.

h)   During the period ended September 30, 2016, the Company incurred bonuses on sales of stealth cards of $182,198 (December 31, 2015 - $nil) to management and officers of the Company which has been included in cost of sales. Bonuses accrue on total gross sales at a rate of 5% each to the Chief Executive Officer and the Chief Financial Officer of the Company.

i)      During the nine months ended September 30, 2016, the Company issued 23,166,555 (December 31, 2015 – nil) common shares with a fair value of $671,831 (December 31, 2015 - $nil) to management and officers of the Company which has been included in consulting expenses.

j)      During the nine months ended September 30, 2016, the Company incurred engineering expense of $7,025 (December 31, 2015 - $132,550), which was included in cost of goods sold, and research and development costs of $42,600 (December 31, 2015 - $nil) to a company owned by the mother of the President of the Company. As at September 30, 2016, the Company owed $51,366 (December 31, 2015 - $245,270) to the company owned by the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. The amount owing has been recorded as accounts payable – related party.