||Related Party Transactions
During the third quarter of Fiscal Year
2015, Mr. Folkson began accruing a consulting fee of $6,000 per month which the aggregate of $24,000 is reflected in professional
fees for the three month period ended December 31, 2019 and reflected in the accrued expenses – related party with a balance
of $9,974 and $33,974 at December 31, 2019 and June 30, 2019, respectively.
On December 8, 2017, Mr. Folkson purchased
Warrants 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 this agreement. Mr. Folkson acquired these Warrants at a cost of $.15 per warrant, which 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. In addition, during the three months
ended December 31, 2019, Folkson had been paid $60,000 against his total accrued balance to date.