| Related Party Transactions |
| 16. |
Related Party
Transactions |
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● |
During the third
quarter of Fiscal Year 2015, Mr. Folkson began accruing a consulting fee of $6,000 per month
which the aggregate of $18,000 is reflected in professional fees for the six month period
ended December 31, 2020 and reflected in the accrued expenses – related party with
a balance of $6,974 and $9,974 at March 31, 2021 and June 30, 2020, respectively. |
On December 8, 2017, Mr.
Folkson purchased Warrants, at a cost of $.15 per Warrant, to acquire up to 80,000 additional shares of NGTF stock at a strike price
of $.20, and with a term of three (3) years from the date of said agreement. This purchase resulted in a reduction in the accrued consulting
fees due him by $12,000. During the second quarter 2019 Mr. Folkson purchased 400,000 shares of stock at a strike price of $0.30 per
share, valued at $120,000 which was charged to his accrual. During the nine months ended March 31, 2021, Folkson had been paid $51,000
against his total accrued balance to date and reflected in the accrued expenses – related party with a balance of $6,974 and $9,974
at March 31, 2021 and June 30, 2020, respectively.
|
● |
In addition, the
Company made bonuses available to Folkson upon the Company hitting certain revenue milestones
of $1,000,000 in a quarter, $3,000,000 in a quarter, and $5,000,000 in a quarter. Achieving
those milestones would earn Folkson warrants with a $.50 and $1 strike price which would
need to be exercised within 90 days of the respective quarterly or annual filing. As of March
31, 2021, those conditions were not met and therefore nothing was accrued related to
this arrangement. |
|
| 14. |
Related Party Transactions |
● |
During
the third quarter 2015, Mr. Folkson began accruing a consulting fee of $6,000 per month which the aggregate of $72,000 and
$72,000 is reflected in professional fees and presented in the accrued expenses – related party for 2020 and 2019 respectively. |
| |
|
● |
The
original consulting Agreement for Mr. Folkson had a term of one year, and then converted into a month to month agreement effective
January 1, 2016. A new twelve month consulting agreement was entered into for Mr. Folkson effective July 1, 2019, which paid
Folkson the same $6,000 monthly consulting fee. In addition, the Company made bonuses available to Folkson upon the Company
hitting certain revenue milestones of $1,000,000 in a quarter and $3,000,000 in a quarter. Achieving those milestones would
earn Folkson warrants with a $.50 and $1 strike price which would need to be exercised within 90 days of the respective quarterly
or annual filing. |
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