Related party transactions

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related party transactions

15. Related party transactions

Shawn E. Leon 

As of December 31, 2018 and 2017 the Company had a receivable of $32,650 and $16,080 from Shawn E. Leon, respectively. Mr. Leon is a director and CEO of the Company. The balances receivable is non-interest bearing and has no fixed repayment terms. 

Mr. Leon was paid management fees of $182,430 and $289,125 for the years ended December 31, 2018 and 2017, respectively. In the prior year, the Company recorded compensation expense in other expenses of $5,074,689 relating to the excess of the fair value of the assets acquired in CCH. Mr. Leon is the owner of Leon Developments, the counterparty in the acquisition of the CCH subsidiary referred to in note 4 above. 

Leon Developments, Ltd.  

As of December 31, 2018 and 2017, the Company owed Leon Developments, Ltd. $1,581,499 and $1,703,796, respectively. In the prior year, on February 14, 2017, the Company acquired CCH from Leon Developments, Ltd., refer note 4 above. CCH owns the facility utilized by the Canadian Rehab Clinic which was sold to a third party on February 14, 2017. The balance owing to Leon Developments, Ltd. Is non-interest bearing and has no fixed terms of repayment. 

Eileen Greene 

As of December 31, 2018 and 2017, the Company owed Eileen Greene, the spouse of our CEO, Shawn Leon, $1,034,114 and $877,182, respectively. During the year ended December 31, 2018, Ms. Greene advanced the company a net $156,932 to fund working capital requirements. The amount owing to Ms. Greene is non-interest bearing and has no fixed repayment terms.

 On December 30, 2016 we entered into a Securities Purchase agreement with Ms. Greene, whereby $163,011 (CDN $220,000) was advanced to the Company in the form of a Series L convertible promissory note, bearing interest at 0% per annum and convertible into shares of common stock at a conversion price of $0.03 per share. On January 17,2017, Ms. Greene advanced the company a further $40,000 in the form of a Series L convertible promissory note, bearing interest at 0% per annum and convertible into shares of common stock at a conversion price of $0.03 per share. During July 2017, Ms. Greene converted the Series L convertible promissory notes into 6,767,042 shares of common stock. 

In connection with the issue pf promissory notes, Ms. Greene was also granted three year warrants exercisable over 6,767,042 shares of common stock at an exercise price of $0.03 per share. The warrants expire between December 30, 2019 and January 17, 2020. 

1816191 Ontario 

As of December 31, 2018 and 2017, the Company owed $0 and $15,921 to 1816191 Ontario, the Endoscopy Clinic, respectively. The payable is non-interest bearing, and has no specific repayment terms. 

 All related party transactions occur in the normal course of operations and in terms of agreements entered into between the parties.