Note 5 - Related Party Transactions

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

5

. RELATED PARTY TRANSACTIONS

Coastal Compassion.

 On

April 7, 2016,

we signed agreements with BASK. BASK is

one

of a limited number of organizations that has received a provisional or final registration to cultivate, process and sell medical and adult use cannabis by the Massachusetts Cannabis Control Commission.

Pursuant to the agreements, we agreed to provide BASK with financing for construction and working capital required for BASK’s approved dispensary and cultivation center in Fairhaven, MA.

On

August 15, 2018,

the Company combined the construction and working capital advances of

$129,634

and accrued interest of

$44,517

and setup a new loan with payments over

5

years with

18%

interest. At

December 31, 2019

and

September 30, 2019,

the outstanding balance on the note receivable was

$143,956

and

148,763,

respectively

On

July 26, 2019,

the Company entered into a

15

-Year Triple Net lease of Building

1

of the MCC with BASK. The lease commenced on

September 1, 2019

and includes an annual base rent of

$135,000

and a revenue participation fee equivalent to

15%

of BASK's gross revenues. As of

December 31, 2019,

the BASK tenant receivable balance was

$1,524.

Tim Keogh, our Chief Executive Officer, is a Board Member of BASK.

During the

three

months ended

December 31, 2019,

the Company incurred and paid

$45,000

of consulting expenses with SCP.