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Related Party Transactions
9 Months Ended
Sep. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

Note 6 – Related Party Transactions


Pursuant to an agreement dated June 2013, TBG Holdings Corp., of which Timothy Hart our Chief Financial Officer and Neil Swartz our Interim Chief Executive Officer are principals, was engaged to provide business advisory services, manage and direct our public relations, provide recruiting services, develop and maintain material for market makers and investment bankers, provide general administrative services, and respond to incoming investor relations calls. Under this agreement, we agreed to pay TBG a first month’s fee of $25,000 and thereafter a monthly fee of $10,000. Additionally, TBG was providing similar services to IHL of Florida, Inc. prior to the Merger at a rate of $25,000 per month. The original agreement was suspended and the agreement with IHL of Florida, Inc. remains in effect. During the nine months ended September 30, 2017 and 2016, the Company expensed $230,000 and $240,000, respectively, of related party management fees related to this agreement. Additionally, TBG has provided working capital to the Company to cover operating expenses. As of September 30, 2017, and December 31, 2016, the Company owed TBG approximately $ $294,000 and $431,000, respectively. It’s been determined that the amount of related party fees are in accordance with the fair market value of like kind services. These amounts are included on the balance sheet under “Accounts payable and accrued expenses - related party”.


On December 13, 2016, in connection with the Merger, the company issued 264,894 shares of Series A Convertible Preferred stock, convertible into 24,900,000 shares of common stock, in equal amounts to each of Timothy Hart, CFO; Neil Swartz, Interim CEO; and Noel Guillama, Chairman. Additionally, the Company agreed to issue 17,599,750 to TBG Holdings and 1,000,000 shares of common stock to Noel Guillama, respectively, as part of the Merger which were ultimately issued subsequent to December 31, 2016.


R3 Accounting LLC, owned by Mr. Hart our Chief Financial officer, provides accounting, tax and bookkeeping services to the Company. During the nine months ended September 30, 2017 and 2016, R3 Accounting provided $60,000 and $10,965, respectively, of services. At September 30, 2017 and December 31, 2016, we owed R3 Accounting $72,031 and $117,530, respectively, and it is included on the balance sheet under “Accounts payable and accrued expenses - related party”.