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Note 14 - Related Party Transactions
12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
Note 14 - Related Party Transactions

NOTE 14 – RELATED PARTY TRANSACTIONS

 

The Company financed its initial operations and property acquisitions through member capital contributions.  For the years ended December 31, 2018 and 2017, the Company received capital contributions of $519,306 and $1,865,240, respectively.

 

Genus is leasing 4200 square feet of property from Hong So Mac, the father of Sam Mac, one of the principal shareholders.  The lease began August 1, 2018 and runs through August 1, 2028, at which time it converts to a month-to-month lease cancellable by either party.  The monthly rent is $3,500 for the first year but then the landlord, at his discretion, can increase the rent to fair market value but not to exceed $3.50 per square foot.  Total rent payments of $17,500 were made as of December 31, 2018.  

 

On December 31, 2018, the Company issued notes payable of $958,467 to several of its principal shareholders, members of management and affiliated companies.  The notes have been classified as notes payable related party.  The notes bear interest at 8% and carry a $5,000 late fee if not paid in full by March 31, 2019, the maturity date.  The notes are unsecured except for one note for $261,650 which is secured by equipment that was purchased with the funds from the note. Most of the remaining balance is payable to Tran Millenium, a company owned by Eric Tran, for consulting related to the formation, strategy, permitting, licensing, compliance and construction design for the new entities formed during 2018.  There were no notes payable related parties as of December 31, 2017.

 

As of December 31, 2018 and 2017, the Company had related party payables of $106,093 and $0, respectively, for reimbursable expenses.