COMMITMENTS & CONTIGENCIES |
9 Months Ended | ||||||||||
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Sep. 30, 2015 | |||||||||||
| Notes to Financial Statements | |||||||||||
| COMMITMENTS & CONTIGENCIES |
NOTE 7 – COMMITMENTS & CONTIGENCIES
Operating Lease
The Company currently occupies office space at 4705 Laurel Canyon Boulevard in Studio City, California. On March 15, 2015, the Company executed a new lease agreement to begin April 1, 2015. Lease payments are $6,500 per month plus parking and CAM charges. The lease expires December 31, 2015 but can be renewed for a one year extension. The original lease required a deposit of $10,610 which was paid on November 1, 2011.
Investment Agreement
On July 9, 2014, the Board of Directors approved an investment arrangement with a third party individual. Per the terms of the agreement the investor has transferred $150,000 to the Company for which he is now entitled to the following; $1 per unit sold through all retail outlets including online and retail shopping shows until the investment is paid back in full. Once the original investment is recouped the investor shall then receive a 2% royalty in perpetuity on all future retail sales of the patented fitness product. As of September 30, 2015 the amount owing is $150,000. Sales have not yet commenced on this product.
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