6. Related Party Transactions

6 Months Ended

Sep. 30, 2018

6. Related Party Transactions

		Six months ended September 30,
	Transactions with related parties		2018		2017

(a)	Transactions incurred with the CEO or companies controlled by CEO:
	Management fees	$	61,886	$	63,016
	Management fees – Stock-based compensation		-		613
	Research and development		49,858		75,815
	General and administrative		54,592		13,182
		$	166,336	$	152,626
(b)	Transactions incurred with the Chairman of the Company
	Management fees ⁽¹⁾	$	-	$	6,000
	Management fees – Stock-based compensation		3,078		16,757
		$	3,078	$	22,757
(c)	Transactions incurred with a Director of the Company
	Management fees – Stock-based compensation	$	1,231	$	6,703
	General and administrative – Interest on convertible promissory note		-		13,605
	General and administrative – Interest on promissory note		20,852		-
		$	22,083	$	20,308
(d)	Transactions incurred with a shareholder of the Company
	Investor relations and promotion	$	10,000	$	77,078
	General and administrative		1,078		-
		$	11,078	$	77,078

	Related party balances, as at		September 30, 2018		March 31, 2018

(e)	Amounts owed to companies controlled by the CEO:
	Accounts payable and accrued liabilities	$	15,626		421,351
	Promissory note – June 2, 2017 ⁽²⁾		25,000		25,000
	Promissory note – July 11, 2017 ⁽³⁾		19,400		19,400
	Convertible Promissory Notes ⁽⁴⁾		649,395		-
	Promissory note – September 14, 2018⁽⁵⁾		15,299		-
	Promissory note – September 25, 2018 ⁽⁶⁾		25,000		-
		$	749,720	$	465,751

(f)	Amounts owed to the Chairman of the Company	$	9,000	$	9,000

(g)	Amounts owed to a Director of the Company
	Accounts payable and accrued liabilities	$	6,000	$	8,622
	Promissory note – September 17, 2017⁽⁷⁾		100,000		100,000
	Promissory note – November 7, 2017⁽⁷⁾		50,000		50,000
	Promissory note – December 5, 2017⁽⁷⁾		100,000		100,000
	Promissory note – April 11, 2018⁽⁷⁾		50,000		-
	Promissory note – May 29, 2018⁽⁸⁾		25,000		-
	Promissory note – June 21, 2018⁽⁹⁾		25,000		-
	Promissory note – June 26, 2018⁽¹⁰⁾		25,000		-
	Promissory note – August 17, 2018 ⁽¹¹⁾		25,000		-
		$	406,000	$	258,622
(h)	Amounts owed to a shareholder of the Company
	Accounts payable and accrued liabilities	$	110,528	$	88,001

⁽¹⁾

On July 1, 2016, the Company entered into an agreement with the Company’s Chairman whereby he would provide services to the Company at a monthly rate of $1,000 for a period of two years ending on June 30, 2018. Effective April 1, 2017, the Chairman agreed to waive the accrued fees.

⁽²⁾

An unsecured promissory note maturing on June 1, 2017, was issued with a twelve-month term, in the amount of $25,000 (CAD $33,380) that bears interest at 12% per annum. The principal balance includes prepaid interest of $3,000. The promissory note is in default. An extension of the term is expected to be renegotiated.

⁽³⁾

An unsecured promissory note maturing on July 10, 2017, was issued with a twelve-month term, in the principal amount of $19,400 (CAD $25,000) that bears interest at 12% per annum. The principal balance includes prepaid interest of $2,328 (CAD $3,000). The promissory note is in default. An extension of the term is expected to be renegotiated.

⁽⁴⁾

Three unsecured convertible promissory notes in the aggregate of $649,395 maturing on September 29, 2018, were issued to the Company’s CEO and his related entities in exchange for extinguishing amounts due for the rendition of services and outstanding loans. The convertible promissory notes bear interest at 4% per annum, and are convertible into units at $0.50 per unit, each unit comprised of 1 share of common stock and a ½ share purchase warrant, one whole share purchase warrant exercisable at $1.50 per share for two years.

⁽⁵⁾

An unsecured promissory note maturing on September 13, 2019, was issued with a twelve-month term, in the principal amount of $15,299 (CAD $20,000) that bears interest at 12% per annum.

⁽⁶⁾

An unsecured promissory note maturing on September 24, 2019, was issued with a twelve-month term, in the principal amount of $25,000 that bears interest at 12% per annum.

⁽⁷⁾

An unsecured promissory note maturing on April 10, 2019, was issued to a Company Director with a twelve-month term, in the principal amount of $300,000 in exchange for consolidating and extinguishing amounts due against prior promissory notes. dated September 17, 2017, November 7, 2017, December 5, 2017, and April 11, 2018, respectively., The new promissory note bears interest of 12% per annum.

⁽⁸⁾

An unsecured promissory note maturing on May 28, 2019, was issued with a twelve-month term in the amount of $25,000 in principal and bears 12% per annum.

⁽⁹⁾

An unsecured promissory note maturing on June 20, 2019, was issued with a twelve-month term in the amount of $25,000 in principal and bears 12% per annum.

⁽¹⁰⁾

An unsecured promissory note maturing on June 25, 2019, was issued with a twelve-month term in the amount of $25,000 in principal and bears 12% per annum.

⁽¹¹⁾

An unsecured promissory note maturing on August 16, 2019, was issued with a twelve-month term in the amount of $25,000 in principal and bears 12% per annum.

MOBETIZE, CORP. 10-Q