NOTE 13 - RELATED PARTIES

The Company recorded revenue related to sales to an entity owned by an immediate family member of Philip Thomas, former CEO, stockholder, and member of the Board of Directors. Mr. Thomas is also an employee of this entity. For the years ended December 31, 2017 and 2016, sales to this related party were $879 and $3,451, respectively. As of December 31, 2017 and 2016, there was $879 and $0, respectively, due from this related party which was included in accounts receivable in the consolidated balance sheets. The Company also purchases product at cost, from this entity to supplement certain vending sales. For the years ended December 31, 2017 and 2016, the Company purchased $30,084 and $27,557, respectively, of product from this entity. As of December 31, 2017 and 2016, the outstanding balance due to this entity included in accounts payable was $16,469 and $10,043, respectively.

As of December 31, 2017 and 2016, the Company is indebted to Mr. Thomas in the amounts of $70,000 and $0, respectively, for an interest-free short-term loan to the Company. This loan is included in other current liabilities within the consolidated balance sheets.

On March 27, 2017, the Company issued an option to purchase 70,000 shares of the Company’s common stock to a party who was, until October 5, 2017, a member of the Board of Directors, in connection with administrative services provided to the Company beyond the Board of Director duties of this Director. As of December 31, 2017 and 2016 accounts payable and accrued expenses to a company wholly owned by this former director were $0 and $4,032, respectively.

For the years ended December 31, 2017 and 2016, the Company incurred expenses of $45,000 and $0, respectively, related to an entity whose majority shareholder is Eric Watson, who beneficially owned approximately 14.5% of the Company as of December 31, 2017. As of December 31, 2017 and 2016, accounts payable due to this entity were $34,410 and $0.