Quarterly report pursuant to Section 13 or 15(d)

Related Parties and Related Party Transactions

v3.23.2
Related Parties and Related Party Transactions
 6 Months Ended
Jul. 31, 2023
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 July 31,

2023

 

 

As of January 31, 2023

 

 

 

 

 

 

 

 

Prepaid expenses

 

 $ -

 

 

 $ 2,000

 

Accounts payable and accrued expenses

 

 

 93

 

 

 

 28

 

Loans payable

 

 

 700

 

 

 

 13

 

 

Related party income statement items (in thousands)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting expenses

 

 $ 66

 

 

 $ 30

 

 

 $ 132

 

 

 $ 60

 

Stock based compensation

 

 

 650

 

 

 

 575

 

 

 

 1,300

 

 

 

 1,150

 

Payroll expenses

 

 

 120

 

 

 

 144

 

 

 

 239

 

 

 

 339

 

 

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.

 

In May 2023, Overwatch distributed to us Pulse and PulseX tokens of 12.3 billion each. As a result of this transaction, the Company distributed to Epic 2.5 billion Pulse tokens. The receipt of Pulse and PulseX also earned Epic 50,000 shares of Series A Preferred Stock, which were issued to Epic during the quarter ended July 31, 2021 and recorded as a prepaid expense of $2.0 million. Our board decided that the value received from Pulse and PulseX, in lieu of sales, satisfied the requirements for the Series A Preferred Stock to be earned by Epic.