8. Related Party Transactions

6 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

8. Related Party Transactions

As of December 31, 2020, and June 30, 2020, the Company owed $1,059,610 and $556,317, respectively, to related parties for reimbursement of various operating expenses, accrued salaries, management fees, etc. which has been recorded in accounts payable and accrued liabilities – related parties. As of December 31, 2020, and June 30, 2020, this amount includes $0 and $7,650 of management fees, which consists of accounting and administrative services to Trucept Inc., a related party company controlled by the Chief Executive Officer of the Company. The management fee agreement calls for monthly payments of $4,500. The agreement is ongoing until terminated by either party. As of December 31, 2020, amounts included with accounts payable and accrued liabilities – related parties for which relate to advances for operating expenses were $119,052.

In November 2019, the Chief Executive Officer converted $170 in amounts owed from the Company into 5,000 shares of Series F Super Preferred Stock.

On July 1, 2019, the Company formalized an employment agreement with its Chief Executive Officer, which entitles him to compensation of three hundred and ninety-three thousand dollars ($393,000) per year. Annual increases will be up to 10% based performance criteria to be determined at a later date. He will be issued common stock of the Company sufficient to provide a 10% ownership position post reverse split which shares be maintained for a period of two years. In addition to all other benefits and compensation, he shall be eligible for a quarterly bonus of $47,000 based on if the Company achieves a net profit for that quarter. As of December 31, 2020, and June 30, 2020, the Company had $683,330 and $440,000, accrued within accounts payable and accrued liabilities – related parties, respectively.

During the three and six months ended December 31, 2020, Dalrada Health recorded revenues of $39,115 and $57,648 to various related parties with common ownership. During three and six months ended December 31, 2020, the Company’s Prakat subsidiary recorded revenues of $50,000 and $97,500 for engineering and consulting services provided to various related parties with common ownership.

See Notes 5, 6, 7, 9, 10 and 12 for additional related party transactions.