| Commitments and Contingencies: |
| 15. |
Commitments and Contingencies: |
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The Company has entered into certain consulting
agreements which carry commitments to pay advisors and consultants should certain events occur. An agreement is in place with
one Company Advisor that calls for total compensation over the four year Advisor Agreement of 500,000 warrants with an exercise
price of $.15 of which 450,000 have vested, should the advisor complete the entire term of the engagement, the remaining 50,000
warrants would vest on July 24, 2021. |
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In April, 2020, the Company successfully negotiated a Debt Incentive
Agreement with one of its creditors to whom it owed $731,118. This Debt Incentive Agreement provides for the elimination of
the entire debt should the Company make payments in calendar 2020 totaling $166,224 in cash, and approximately 4,000 pints
of ice cream. Because this reduction in debt is conditional, the full $731,118 is currently included in the liabilities section
of our balance sheet. Should the Company make the payment and retire the debt during calendar 2020, The Company would realize
a Gain on Extinguishment of Debt of approximately $560,000. |
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Additional Consulting agreements
call for certain Consultants to receive cash and stock bonuses for directly assisting the Company in hitting certain operational
milestones, such as national television publicity, achieving revenues of $500,000 monthly, $1,000,000 monthly, and $3,000,000
quarterly.
CEO Sean Folkson has a consulting
agreement which will reward him with 1,000,000 warrants at a strike price of $.50 when the Company records its first quarter
with revenues over $1,000,000, an additional 3,000,000 warrants with a $.50 strike price when the Company records its
first quarter with revenues over $3,000,000, and an additional 3,000,000 warrants with a $1 strike price when the Company
records its first quarter with revenues over $5,000,000.
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