NOTE 7 – DUE TO RELATED PARTY 

Successor

During the nine months ended September 30, 2017, the Company received no advances from its CEO/director, incurred business expenses that were paid by the CEO/director of $962,172 (comprised of operating expenses of $946,669, inventory purchases totaling $5,650, website development costs of $8,913, and purchased equipment of $940) and had repayments of $631,035. The Company has a balance owed to the related party of $771,884 at September 30, 2017 (Successor). During the three and nine months ended September 30, 2017 (Successor), the Company incurred $45,000 and $135,000, respectively, of deferred compensation related to the CEO/director’s employment agreement and $20,000 and $60,000, respectively, of deferred compensation related to the Secretary’s employment agreement. As of September 30, 2017 (Successor), accrued compensation-related party was $971,000. 

Predecessor 

CCI had no employment agreement with its CEO and director but CCI still incurred compensation on behalf of the CEO and director. CCI incurred compensation expense of $20,110 and $56,884 in the three and nine months ended September 30, 2016 (Predecessor), respectively. There were no amounts due to the CEO and director for unpaid amounts related to business expenses paid by the CEO on behalf of CCI. During the three and nine months ended September 30, 2016 (Predecessor), the CEO and director received employee benefits totaling $15,490 and $34,329, respectively. In addition, the CEO/director incurred business expenses of $1,250 and $6,570 and had repayments for business expenses of $0 and $180 for the three and nine months ended September 30, 2016 (Predecessor), respectively.