RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2017

NOTE 7 — RELATED PARTY TRANSACTIONS

Borrowings: In September 2015, David Clarke, the Company’s Chairman of the Board and a significant stockholder of the Company, loaned the Company $100,000 further to a promissory note bearing interest at 5% per annum, principal and unpaid interest payable on demand. In addition, Mr. Clarke incurred expenses on behalf of the Company totaling approximately $50,000. Concurrent with the closing of the Offering, the loan and liability related to the expenses were converted into 33,333 shares of common stock and 33,333 warrants at the public offering price of $4.50.

Restricted Shares: In November 2016, the Company issued 151,515 shares of restricted common stock to its Chairman of the Board at a purchase price of $1.65 per share pursuant to a Private Placement Memorandum. In March 2017, the Company issued 70,000 shares of restricted stock to its Chairman of the Board at a purchase price of $1.50 per share pursuant to a Private Placement Memorandum.

Due to related party at March 31, 2017 and December 31, 2016 consists of a payable to SDJ Partners, LLC, a partnership owned by the Tandon family, for rent due on a facility shared prior to 2015. Jawahar Tandon is a former director and Chief Executive Officer and Devinder Tandon is a former director.