Quarterly report pursuant to Section 13 or 15(d)

RELATED-PARTY TRANSACTIONS

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RELATED-PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
RELATED-PARTY TRANSACTIONS

Royalty Agreement

 

The Company has a Contribution and Royalty Agreement with Dr. Haufe. The agreement provides for the Company to pay Dr. Haufe royalties equal to 1% of revenues earned from sales of any and all products derived from the use of the DenerveX technology. No royalties have been paid or are payable as of June 30, 2017.

 

Co-Development Agreement

 

The Company has a Co-Development Agreement with Dr. Andrews. The agreement provides for the Company to pay Dr. Andrews a royalty of 2% of revenues earned from applicable product sales over a period of 5 years. No royalties have been paid or are payable as of June 30, 2017.

 

Aviation Expense

 

Periodically the Company may charter general aviation aircraft from TAG Aviation LLC (“TAG”), a company owned by Mr. Jarrett Gorlin. The Company believes that such aircraft charter is on terms no less favorable then it would receive from a third party. No general aviation expenses were paid to TAG for the three and six months ended June 30, 2017. General aviation expenses paid to TAG for the three and six months ended June 30, 2016, were approximately $0 and $9,000, respectively

 

Operating Lease

 

As described in Note 6, the Company pays TAG Aviation LLC, (“TAG”), a company owned by Mr. Gorlin, for month to month rental of office space at Dekalb-Peachtree Airport in Atlanta Georgia plus cost of utilities. Rent payments under this arrangement were $1,800 per month through August 31, 2016. Effective September 1, 2016, rent payments under this arrangement increased to $2,147 per month.

 

Rent expense and utilities cost paid to TAG Aviation amounted to approximately $6,300 and $15,700 for the three and six months ended June 30, 2017, respectively. Rent expense and utilities cost paid to TAG Aviation amounted to approximately $7,500 and $15,000 for the three and six months ended June 30, 2016, respectively.

 

Consulting Expense

 

As described in Note 6, the Company paid $30,000 and $55,000, respectively, for the three and six months ended June 30, 2017 to a founding stockholder for business advisory services. The Company paid $15,000 and $30,000, respectively, for the three and six months ended June 30, 2016.