Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Related Party Transactions

Note 6 - Related Party Transactions
6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]



During the year ended December 31, 2017, Sanford Lang, the Company’s former Chairman and CEO, advanced the Company $289,821 to pay for general operating expenses. The advance required a monthly interest payment of $2,545 and was due on demand. In June 2021, Mr. Lang and Mr. Goldrod executed an agreement with the Company whereby this advance and all other amounts owed to them were repaid and they resigned from the Board of Directors. Further, for a period of 36 months beginning in July 2021, the Company will repurchase an aggregate of $10,950 of shares each month from Mr. Lang and Mr. Goldrod, with the share price for each purchase to be set according to the volume weighted average price of trades in the stock over the last 10 days of the month.


As of June 30, 2021, the Company owed TSG $72,843 for expenses paid by TSG on behalf of the Company for expenses to launch licensed brands. Once royalties exceed $250,000 in the aggregate, and the Company has an adequate cash reserve, TSG may deduct the incurred expenses from the subsequent royalty payments until TSG is paid in full. In addition, the Company owes TSG and its subsidiaries an additional $230,849 for expenses paid on behalf of the Company or funds advanced to the Company to pay for other operating expenses. TSG is owned by Ross Sklar, CEO.



On January 24, 2020, the Company executed a promissory note for $100,000 with Ross Sklar, CEO. The note bears interest at 4% per annum, compounded monthly, is unsecured and matures two years from the original date of issuance. On June 28, 2021 an additional $100,000 was advanced to the Company on the same terms. As of June 30, 2021, there is $542 of accrued interest due on this note.


During the six months ended June 30, 2021, the Company incurred $179,940 of marketing expense from The Woo. David Dryer, the EVP of Marketing is a Managing Director at The Woo.


During the six months ended June 30, 2021 and 2020, the Company recognized revenue of $374,570 and $352,264, respectively. There are $133,599 of accounts receivable from related companies as of June 30, 2021. All revenue received is from related parties.