Related Party Transactions |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note 6. Related Party Transactions | Related Parties
Related parties with whom the Company had transactions are:
Free Office Space
The Company has been provided office space by its Chief Executive Officer at no cost. Management determined that such cost is nominal and did not recognize the rent expense in its financial statement.
Advances from Current Shareholder
From time to time, a shareholder of the Company advance funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.
Work-for-Hire Research and Development Arrangement and Technology Transfer Agreement with 8198381 Canada Inc.
8198381 Canada Inc., a related party, provides research and development services to the Company as a work-for-hire on as needed basis.
8198381 Canada Inc.’s services enumerated through June 22, 2015 have never been memorialized in a writing but have previously agreed by way of oral contract to assign the PET Depolymerization Technology to the Company.
On June 22, 2015, Loop Holdings, Inc. ("Purchaser") entered into a technology transfer agreement ("Technology Transfer Agreement") with 8198381 Canada Inc. ("Seller") whereby 8198381 Canada Inc. and the Company memorialized the work-for-hire research and development arrangement between the parties and the assignment/transfer of technology and information from 8198381 Canada Inc. to the Company for work performed through June 22, 2015 under the 8198381 Canada Inc. Oral Contract.
8198381 Canada Inc. invoiced the Company $200,000 and $50,000 of work-for-hire research and development services for the period from March 1, 2015 through June 22, 2015 and for the period from October 23, 2014 (inception) through February 28, 2015, respectively. Seller will invoice Purchaser on a monthly basis in the future, to perform work-for-hire research and development services related to the development of PET depolymerization technology, including but not limited to, the design and engineering of production facilities, equipment testing, cost reduction assessment of chemical processes, product purity testing and research and development related to PET plastic production facilities (the “PET Depolymerization Technology”) and to assign the PET Depolymerization Technology to Purchaser. |