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 $24,000 is reflected
in professional fees for the three month period ended March 31, 2020 and reflected in the accrued expenses – related
party with a balance of $9,974 and $33,974 at March 31, 2020 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.
During the three months ended March 31, 2020, Folkson had been paid $18,000 against his total accrued balance to date.
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