Quarterly report pursuant to Section 13 or 15(d)

Related Parties and Related Party Transactions

v3.22.4
Related Parties and Related Party Transactions
 9 Months Ended
Oct. 31, 2022
Related Parties and Related Party Transactions  
Related Parties and Related Party Transactions

Note 10. Related Parties and Related Party Transactions

 

Related party balance sheet items (in thousands)

 

 

 

As of October 31,

2022

 

 

As of January 31, 2022

 

 

 

 

 

 

 

 

Prepaid expenses

 

$

2,000

 

 

$

2,000

 

Accounts payable and accrued expenses

 

 

-

 

 

 

24

 

Loans receivable

 

 

6

 

 

 

-

 

Loans payable

 

 

-

 

 

 

24

 

 

Related party income statement items (in thousands)

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting expenses

 

$

30

 

 

$

-

 

 

$

90

 

 

$

-

 

Stock based compensation

 

 

 575

 

 

 

 -

 

 

 

 1,725

 

 

 

 -

 

Payroll expenses

 

 

132

 

 

 

122

 

 

 

484

 

 

 

236

 

 

During the quarter ended July 31, 2021, the Company issued 50,000 shares of Series A Preferred Stock to Epic. The issuance was done as a prepayment for services to generate sales for the Company. The shares are earned as sales generated by Epic achieve certain sales targets.

 

Sale of Vehicle

 

On August 11, 2022, our board of directors approved the sale of our 2022 Cadillac Escalade to Eric Jaffe, our former chief executive officer and current board member, for $91,983. Mr. Jaffe paid for the vehicle with 26,662 shares of his Company common stock. The shares are considered treasury stock.

 

Sale of HEX 

 

On August 14, 2022, to fund operations our board of directors approved the sale of 10 million HEX tokens to Michael Hawkins for $450,000. During the nine months ended October 31, 2022, the market price of HEX dropped. The Company recorded a loss on the transaction of approximately $47,000.

 

On September 16, 2022, to fund operations our board of directors approved the sale of approximately 6.7 million HEX tokens and approximately 7 Bitcoins to Michael Hawkins for $304,747. During the nine months ended October 31, 2022, the market prices of HEX and Bitcoin dropped. The Company recorded a loss on the transaction of approximately $195,000.