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Note 15 - Related Party Transactions
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE
15
– RELATED PARTY TRANSACTIONS
 
The Company has received loans from several related parties, as described above in Notes
10
and
12.
 
There are advances of
$775,328
and
$425,328
to CEN Ukraine as of
December 31, 2017
and
2016,
respectively. CEN Ukraine was founded by Bill Chaaban. Prior to
December 3, 2017,
Bill Chaaban directly owned
51%
of CEN Ukraine. Subsequent to
December 3, 2017,
Mr. Chaaban directly owned
25.5%
of CEN Ukraine. CEN Ukraine was founded to seek agricultural and pharmaceutical opportunities in Ukraine. Bill Chaaban personally funded the establishment and initial phases of CEN Ukraine. On
December 14, 2017,
the Company entered into a controlling interest purchase agreement with Bill Chaaban and another shareholder of CEN Ukraine for
51%
of the outstanding equity interests of CEN Ukraine. The consideration will be paid by issuing common shares of the Company. The agreement, which is subject to certain conditions, has
not
closed as of
April 16, 2018.
 
On
July 12, 2017,
the Company’s Shareholders elected individuals to serve as Directors on the Board. These individuals hold long-term convertible notes payable issued prior to the election. All notes payable bear interest at
5%
per annum and are convertible to common shares with various maturity dates. They became related parties when they were elected.
 
During the years ended
December 31, 2017
and
2016,
the Company incurred consulting fees with certain Board Members and Officers totaling
$767,249
and
$24,000,
respectively. As of
December 31, 2017
and
2016,
$11,986
and
$62,994
was payable to these related parties for consulting charges.
 
During
2017,
the Company purchased equipment from R&D Labs Canada, Inc., whose president is Bill Chaaban, in exchange for a
$300,000
note payable. This equipment was then sold to CEN Ukraine for a loss of
$255,141
in exchange for a
$44,859
note receivable, payable in
10
equal installments through
2026.
Due to the related party relationship between CEN and R&D Labs Canada, Inc, via Bill Chaaban, the loss on the transaction was considered to be an equity transaction and therefore was included as a distribution of paid-in capital within the consolidated statements of shareholders’ equity.