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Related Parties Transactions
9 Months Ended
Nov. 30, 2018
Related Parties Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS

NOTE 6 – RELATED PARTIES TRANSACTIONS

 

On January 24, 2017, the Company entered into a Debt Refinancing Agreement with Mr. Breslow, a former Director of the Company. Pursuant to the agreement, both Mr. Breslow and the Company acknowledged that total debt owed to Mr. Breslow was $23,872,614 including $8,890,574 of accrued interest. Mr. Breslow agreed to cancel and forgive all interest due, waive all events of default and sign a new five-year convertible note in the amount of $14,982,041 providing for no interest for six months and interest of 5% per annum thereafter payable monthly in arrears. The note also provides various default provisions. In accordance with the agreement, on February 14, 2018, the effective date of the 1 for 7 reverse stock split $11,982,041 of the note was converted into 7,403,705 shares of common stock and the then accrued interest of $9,388,338 was forgiven. A new $3,000,000 note representing the remaining balance was entered into due and payable in five years bearing interest at 5% per annum payable monthly in arrears.

 

At November 30, 2018, the balance in Notes Payable and accrued interest-related party, current, includes $3,268,081 plus accrued interest of $2,319,357 to Mr. Kopple (a former Board member), a 10% shareholder. Related Parties Transactions also includes $82,000 of unsecured notes payable plus accrued interest of $46,231 to our CEO pursuant to a demand note entered into on April 5, 2014. At November 30, 2018, the balance in Convertible note payable and accrued interest-related party, long term, includes $2,000,000 of unsecured convertible notes payable plus accrued interest of $1,546,354 and an unsecured convertible note of $20,000 plus accrued interest of $2,160 to Mr. Kopple. Subscriptions receivable at November 30, 2018 includes $175,000 for the issuance of 357,143 shares which were previously issued. The balance in notes payable - long term, includes $3,000,000 to Mr. Breslow, a 20% shareholder.

 

During the nine months ended November 30, 2018, we issued 2,256,444 shares of common stock, valued at $2,280,964 to Harry Kurtzman on behalf of BetterSea LLC, a greater than 15% shareholder as part of the restructuring agreement. We issued an additional 5,108,291 shares of common stock valued at $1,992,251 to Harry Kurtzman on behalf of BetterSea LLC as a settlement for disputes. During the nine months ended November 30, 2018, BetterSea LLC billed the company $314,645 for services rendered and was paid $316,963. The company also employs the law firm of TMK Assoc., owned by the daughter of Harry Kurtzman, as its corporate attorney. In the nine months ended November 30, 2018, TMK Assoc. has billed the company $324,581 for services rendered and has been paid $279,351. During the nine months ended November 30, 2018, the company paid Mr. Si Ryong Yu $80,000 for consulting services. During the nine months ended November 30, 2018, the company received $1,225,000 from Elimelech Lowy, a greater than 40% shareholder as partial payment on a subscription receivable of $1,300,000 for stock issued in February 2018. The agreement had called for the stock to be paid for at the time of issuance.