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Related Party Transactions
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

Note 7 – Related Party Transactions

 

As of March 31, 2020 and December 31, 2019, the Company has accrued compensation to CEO, CFO and Director in the amount of $205,141, and $155,841, respectively. As of March 31, 2020 and December 31, 2019, accrued payable due to former officers were $1,117,397 and $1,137,397. For the three months ended March 31, 2020 and 2019, total cash-based compensation to related parties was $90,000 and $48,275, respectively. For the three months ended March 31, 2020 and 2019, total share-based compensation to related parties was $67,621 and $355,612 respectively. These amounts are included in general and administrative expenses in the accompanying financial statements.

 

From 2017  to 2019, Mr . Gonfiantini, CEO, personally and through his Company, Crystal Bay Financial LLC, loaned an aggregate amount of $1,020,000 to Royal Asset Management. These notes accrue interest at 17%-18% per annum, and require monthly payment approximately from $5,000 to $20,000. These notes are personally guaranteed by the managing member of Royal Asset Management, and secured by certain equipment and other tangible properties of Royal Asset Management. Among these notes, $500,000 note was also secured by the medical marijuana licenses held by Royal Asset Management.

 

At March 31, 2020, the Company owed Mr. Throgmartin, former CEO (See Note 11), $140,958 pursuant to a promissory note dated August 12, 2016. This note accrued interest at the rate of 8% per annum and payable upon the earlier date of (i) the second anniversary date of the promissory notes, (ii) the date all of the current investor notes, in the outstanding aggregate principal and accrued interest amount of approximately $1,480,000 at September 30, 2016, have been paid in full and the Company has achieved gross revenues of at least $3,000,000 over any consecutive 12-month period. The balance of related party note was $140,958 and $140,958 at March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020, the note was past the maturity date, however the Company has not yet received a default notice.