Related Party Transactions
|12 Months Ended|
Dec. 31, 2016
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 4 - RELATED PARTY TRANSACTIONS
On February 23, 2015, the Company acquired Franklin Networks, Inc. (Franklin) from Mark McGarrity and another minority shareholder. Subsequently, on March 2, 2015, Mr. McGarrity was hired as Chief Information Officer of the Company. See Note 9.
During the months of April, May and June, 2015 all activities of Franklin were conducted from shared business offices of an officer of the Company. The Company paid $2,500 per month for the use of these facilities for a total of $7,500 and was reflected as part of Loss from discontinued operations on the accompanying consolidated statements of operations. As of December 31, 2015, the Company owed this officer a total of $7,000 in unpaid rent and other fees which was reported as related party accounts payable on the accompanying balance sheet.
During the months of April, May, June and July 2015, the Company used consulting services of a company owned by an officer of the Company in the amount of $38,000, of which $30,000 was reflected as part of Other General and Administrative Expenses on the accompanying consolidated statements of operations and $8,000 was reflected as part of Loss from discontinued operations on the accompanying consolidated statements of operations.
On October 3, 2016, the Company sold trading securities valued at $340,000 to Berkshire Capital Management Co., Inc. (“Berkshire”) for $500,000. Berkshire is controlled by Joseph Fiore, majority shareholder and chairman of the board of directors of the Company. The Company reported the $160,000 difference between the value of the trading securities and cash sale price as contributed capital.
The Company paid a total of $60,000 during the years ended December 31, 2016 and 2015 to a management and consulting firm owned by Mr. Joseph Fiore, majority shareholder and chairman of the board of directors of the Company. The payment pertains to services rendered for the Company’s restaurant business, Eat at Joes.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef