Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.20.1
Related Party Transactions
3 Months Ended
Apr. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

On November 1, 2017, the Company entered into a consulting agreement with Alex Mardikian, the Chief Executive Officer. The agreements call for $7,000 per month. This agreement is at will and subject to being terminated at the discretion of Company at any time, upon thirty (30) days prior written notice to Consultant. In addition, this Agreement may be terminated by Consultant upon thirty (30) days prior written notice to Company. The payments may be booked as a note due, which may be converted into shares of the company at a then-current price per share. The Company and consultant may elect to convert a portion of this into equity of the company.

 

On November 1, 2017, the Company entered into a consulting agreement with Brandy Craig, the Chief Financial Officer. The agreements call for $3,500 per month. This agreement is at will and subject to being terminated at the discretion of Company at any time, upon thirty (30) days prior written notice to Consultant. In addition, this Agreement may be terminated by Consultant upon thirty (30) days prior written notice to Company. The payments may be booked as a note due, which may be converted into shares of the company at a then-current price per share. The Company and consultant may elect to convert a portion of this into equity of the company.

 

On November 1, 2017, the Company entered into a consulting agreement with Paul Rosenberg, the Director. The agreements call for $3,500 per month. This agreement is at will and subject to being terminated at the discretion of Company at any time, upon thirty (30) days prior written notice to Consultant. In addition, this Agreement may be terminated by Consultant upon thirty (30) days prior written notice to Company. The payments may be booked as a note due, which may be converted into shares of the company at a then-current price per share. The Company and consultant may elect to convert a portion of this into equity of the company.

 

On November 1, 2017, the Company entered into a consulting agreement with the Law Offices of Carl G. Hawkins to serve as corporate counsel. The agreement calls for a one-time payment of $5,000 plus $150 per hour for legal services. This agreement is at will and subject to being terminated at the discretion of Company at any time, upon thirty (30) days prior written notice to Consultant. The payments may be booked as a note due, which may be converted into shares of the company at a then-current price per share. The Company and counsel may elect to convert a portion of this into equity of the company.  

 

The Company entered a Line of Credit with MCIG, for up to $500,000 in funding on November 1, 2016.  The Line of Credit will terminate on April 30, 2019.  It was given at a 0% interest rate and is payable upon termination date with the option to convert the agreement into equity at a 15% discount to the then current market rate. Since inception, the Company had various transactions in which MCIG paid expenses on behalf of the Company. As of April 30, 2018, the Company borrowed $3,635,253.42 from MCIG. $3,043,285 of which represents the 420 Cloud Software Network that was exchanged for 100,000 shares of Series A Preferred Stock and 500,000 shares of OBITX common stock on November 1, 2017. As of April 30, 2019, the amount outstanding on the Line of Credit with MCIG is $629,358.57. The Line of Credit was increased to $1,000,000 on January 1, 2018.

 

On June 14, 2018 the Company entered a Line of Credit with APO Holdings, LLC for up to $100,000 at any one time.  The Line of Credit may be cancelled at any time by either party providing 30 days written notice of cancellation.  It was given at a 0.6% interest rate and may be paid at any time with no definitive payoff date. As of April 30, 2019 the current outstanding on the line of credit is $77,400 principal and $3.53 interest. 

On June 30, 2018 OBITX provided services to their subsidiary altCUBE in the amount of $25,167. This amount was made up of General Administrative expenses of $1,250, Website Design of $16,009, Marketing Expense $7,168, and Website Maintenance of $740. In January 2019 altCUBE was written off as discontinued operations.