Related Party Transactions

3 Months Ended

Jun. 30, 2017

Note 5 – Related Party Transactions

(1)

On April 14, 2014, the Company entered into a Service Software Provider Agreement (the "Agreement") with Panash S.A.C ("Provider"), a company owned by our President, Panayis Palexas. Under the Agreement, the Provider will develop creative ads, manage social media networks, maintain and engage existing users via social media networks, and manage the Company's Facebook Fan page. In addition, the Provider will ensure brand positioning and increase awareness as we grow and retain users. The Provider will be paid by the Company for its services with a minimum of $10,000 monthly or 10% of monthly revenue earned by the application the Provider is servicing. This amount will not exceed of $100,000 per month. Only in the 1st year of operation accumulated compensation may be paid with a Promissory Note which will be due and payable on or before April 30, 2016.

During the three months ended June 30, 2017 the Company accrued fees of $30,000 in respect of the above Agreement. The Company did not make any cash payments in the current period, leaving $270,000 on the balance sheets as accounts payable – related party ($240,000 – March 31, 2017).

(2)

On April 1, 2014, the Company entered into a software license and services agreement with Game Media Works, Ltd. ("GMW"), a company 100% controlled by our President, Panayis Palexas. Under the software license and services agreement, GMW grants to the Company a non-exclusive non-transferable and individual license making the Casino Games, Jackpot Games and Branded Games ("the System") available to End Users to play via the internet using the Cleo's Casino proprietary platform. The fee for the license of the System is an ongoing usage fee equal to 10% of the monthly gross income generated by the games.

During the three months ended June 30, 2017, GMW charged $1,332 (2016 - $2,981) in license fees. The Company didn't make any cash payments, leaving $48,559 in the balance sheet as accounts payable – related parties (March 31, 2017 - $47,227).

(3)

During the three months ended June 30, 2017, Virtu Citi LLC, a Company controlled by our President, Panayis Palexas, advanced $2,000 (2016 - $5,750) to the Company for ongoing operating expenses. The Company didn't make any cash payments to further reduce the balance, leaving $115,076 in the balance sheet as accounts payable – related parties ($113,076 – March 31, 2017).

(4)

During the fiscal year ended March 31, 2015, Panayis Palexas, sole officer and director of the Company paid operating expenses in the amount of $127,082. The Company did not make any cash payments during fiscal 2017 or 2016, or during the three months ended June 30, 2017, leaving $127,082 on the balance sheets as account payable – related parties.

(5)	During the fiscal year ended March 31, 2016, Demetris Nicolas Palexas advanced $18,000 to the Company for operating expenses, which amount remains unpaid. Mr. Palexas is the brother of our sole officer and director.

(6)

During the three months ended June 30, 2017, Joy Media Works, LLC, a company controlled by our President, Panayis Palexas, invoiced to the Company $30,528 (2016 - $26,554) for advertising expenses. The Company paid $2,000 in cash, leaving $187,302 on the balance sheets as accounts payable – related parties ($158,774 – March 31, 2017).

TRUPAL MEDIA, INC. 10-Q