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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Note 5 - Related Party Transactions

Accounts Payable - Related Party

The Company's accounts payable - related party consist of guaranteed payments and expense reimbursement to Titan members and purchased technology from an entity owned by an officer of the Company. Accounts payable - related party was $0 and $337,345 as of June 30, 2019 and December 31, 2018, respectively.

On April 1, 2019, the Company issued 117,092 shares of common stock with an approximate fair value of $292,730 to settle the Separation Agreement with a former officer to settle $37,500 of advances and approximately $300,000 of the accounts payable - related party.

During the six months ended June 30, 2019, the Company leased software technology for operations from an entity owned by an officer of the Company and recognized expense of approximately $260,000.

Due from Related Party

The related party balances as of January 2, 2019, were acquired as part of the Sheehy acquisition (see Note 2 – Acquisitions – Sheehy). SEI and NADS are companies controlled by the former owner of Sheehy who currently is an officer of the Company. The transactions representing the balance due to SEI and due from NADS at January 2, 2019, were for ordinary course business transactions incurred prior to the acquisition. The balance due to the officer on the acquisition date, represents personal funds advanced to Sheehy for general working capital purposes prior to the acquisition. On January 7, 2019, the Company transferred a total of $150,000 to SEI to fully repay the balance due to the officer and reduce the payable due to SEI.

	June 30,			January 2,
	2019			2019
	(Unaudited)			(Unaudited)
Due to Sheehy Enterprises, Inc.	$	(374,890	)	$	(439,890	)
Due from North American Dispatch Systems		776,948			776,948
Officer		-			(85,000	)
	$	402,058		$	252,058

On November 18, 2019, and pursuant to the Intercompany Agreement, the Company assigned $374,890 of the NADS receivable balance to SEI as full payment of the SEI payable. The remaining NADS receivable of $402,058 was assigned to SEI as a partial payment of the Sheehy Note (See Note 2 – Acquisitions – Sheehy). The remaining principal amount due of $47,942 plus accrued interest of $39,947 was paid in the form of 35,156 shares of EVO common stock.

Advances from Related Party

As of June 30, 2019, and December 31, 2018, advances from EAF members were $286,929 and $324,429, respectively.

Accounts Receivable – Related Party

The Company sold an immaterial amount of CNG to an officer's company. As of June 30, 2019, and December 31, 2018, accounts receivable – related party was $0 and $40,571, respectively.

Accrued Interest - Related Party

The Company's accrued interest - related party consists of the accrued interest payments on stockholders' and related party debt. Accrued interest - related party was $1,230,531 and $922,471 as of June 30, 2019, and December 31, 2018, respectively.

Off Balance Sheet Arrangements - Collateral Security Pledge Agreement

On January 31, 2019, the Company entered into a Collateral Security Pledge Agreement with SEI to satisfy the Sheehy captive insurance security deposit requirement for 2019 (see Note 11 - Commitments and Contingencies – Off Balance Sheet Arrangements – Captive Insurance). Under the agreement SEI has pledged a total of $327,975 in cash and investments held in the SEI captive insurance member account. The pledged collateral remains the exclusive property of SEI and any interest earned on the pledged collateral during the term of the agreement will accrue exclusively to the benefit of SEI. The Company has no claim to the pledged collateral or any accrued interest. The agreement expired on March 1, 2020, and the Company is in negotiation with SEI to extend the agreement.

For further information regarding related-party transactions, see Note 2 for acquisitions. In addition, the Company entered into multiple related-party transactions as described in Notes 8, 9, and 10.