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OTHER ITEMS
6 Months Ended
Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ITEMS

NOTE 6 – OTHER ITEMS

(a)     Investor relations agreements

 

The Company enters into contracts with various investor relations specialists to help support the ongoing financing activities of the business. Further details of historic fees paid and arrangements are detailed in our Form 10-K for the year ended March 31, 2019.

Investor Relations Company 1 - On June 27, 2018, the Company entered into a Master Services Agreement with investor relations company 1, pursuant to which for an initial three month term, the third party shall provide services related to advising and assisting the Company in developing and implementing appropriate plans and materials for presenting the Company and its business plans, strategy and personnel to the financial community, introducing the Company to the financial community through the use of social media, digital media and other online awareness campaigns. There has been no additional trading with investor relations company 1 during the six months ended September 30, 2019.

Investor Relations Company 2 - On May 1, 2019, we reinstated the existing agreement with investor relations company 2, which remained a rolling monthly contract with a three month assumed length, although cancellable after each completed month. A payment of $7,500 was agreed at the beginning of each month, plus an additional $2,500 per month for additional services, if taken; and if the contract runs for the whole three month term, 12,500 shares will be issued at the end of the term. $20,000 was expensed in the three months ended June 30, 2019 relating to cash payments.

During the quarter ended September 30, 2019, $12,500 of cash fees were expensed and paid and 12,500 shares were issued with $12,376 expensed to investor relations.

Investor Relations Company 3 - On March 18, 2019 the Company cancelled its existing agreement with investor relations company 3 and entered into a new agreement. The term of this contract has been agreed to be on a month to month basis. Compensation is partly in cash and partly in restricted common stock. At the beginning of each monthly term a cash payment of $5,000 will be made and 7,500 shares of restricted stock will be issued. This contract ended in May 2019. 7,500 shares with a fair value of $1.04 were issued in April and 7,500 shares with a fair value of $0.90 were issued in May totaling $14,550. $13,320 was expensed in relation to cash paid for this agreement during the three months ended June 30, 2019, including $2,097 released from prepaid expenses at April 1, 2019. Total stock compensation expense for the three months ended June 30, 2019 was $17,888. There has been no further activity with investor relations company 3 during the three months ended September 30, 2019.

(b) Management Consultancy Agreements

Management Consulting Company 1 - On June 1, 2019, the terms for management consulting company 1 were amended for a four month period from June 1, 2019 to September 30, 2019, with $40,000 cash paid up front and 27,500 shares issued up front.

During the quarter ended September 30, 2019, $18,434 of opening share prepayment and $30,000 opening cash prepayment were expensed.

Additional agreements were also entered into with management consulting company 1. An addendum commencing July 17, 2019 for a 90 day period was entered into for a total of $20,000 fee paid only in cash. $16,304 was expensed during the quarter with $3,696 prepaid at September 30, 2019. An additional agreement was entered into for the three month period from September to November 2019 for $35,000 fee paid only in cash. $11,538 of this was expensed in the quarter and $23,462 was treated as a prepaid expense at September 30, 2019.

Management Consulting Company 2 - On January 7, 2019 the Company entered into a six-month contract with management consulting company 2 for the provision of specialist consulting services. 150,000 restricted shares were issued in May 2019, on the fourth month after commencement of the original contract. A fair value of $0.94 per share, which was the share price on May 7, 2019 (the first day of the first amendment of the consulting agreement) was applied as the shares were issued fully and irrecoverably on the first day of the contract. The cost is being expensed evenly over the five month contract term.

This contract ended on September 30, 2019 and the opening prepayment of $84,600 was expensed during the quarter ended September 30, 2019.

Total stock based compensation recognized during the three and six months ended September 30, 2019 was $115,410 and $277,664, respectively and $114,500 for the three and six months ended September 30, 2018 respectively.

(c) NASDAQ correspondence

The Company was notified by NASDAQ on July 15, 2019 that the Company no longer meets the requirements of NASDAQ Rule 5550(a)(2) requiring listed securities to maintain a minimum closing bid price of $1.00 per share. If the closing bid price of the Company’s common stock is $1.00 per share or more for a minimum of 10 consecutive business days at any time prior to January 11, 2020, the Company will regain compliance.