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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
NOTE 6 - RELATED PARTY TRANSACTIONS

On March 22, 2016, Company executed a promissory note with Sector Five, Inc., a privately held Delaware corporation, for the purchase of inventory in the amount of $120,006. The note is due in one year and bears interest at 5%. The balance of the note was subsequently reduced by $34,840 for $17,160 of inventory that was returned to the lender and $7,260 that was determined to be obsolete. As of December 31, 2017, there was $85,166 and $9,335 of principal and interest, respectively, due on this note. As of March 31, 2018, there is $85,166 and $10,385 of principal and interest, respectively, due on this note. This note is currently past due.

 

Since the change in control, the Company’s CEO and Chairman has loaned funds to the Company in support of its operations by providing payments to the Company’s vendors and advances for operations. These amounts are considered due on demand and are non-interest bearing. As of March 31, 2018 and December 31, 2017, the balance due for these advances is $212,750 and $211,175, respectively.

 

Since the change in control, Kirkland Holdings, Inc., a company with common management, has advanced funds to the Company for operations. The advances are unsecured, non-interest bearing and due on demand. As of March 31, 2018 and December 31, 2017, the balance due for these advances is $64,917 and $59,267, respectively.

 

Per the terms of a consulting agreement, dated January 4, 2018, with Sector Five, Inc., a privately held Delaware corporation the company will pay $5,000 a month for services to be rendered. As of March 31, 2018, there is $15,000 outstanding per the agreement.

 

Pursuant to the terms of the employment agreement with Erick Kuvshinikov, CEO, effective February 13, 2018, the Company granted Mr. Kuvshinikov 1,000,000 shares of common stock, 50% of the which vested as of February 15, 2018. The other 50% will vest sixty days after the effective date of the employment agreement. In addition, Mr. Kuvshinikov will also receive a salary of $2,500 a month for six months.