Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2019
RELATED PARTY TRANSACTIONS  
Note 15 - RELATED PARTY TRANSACTIONS

The Company has an arrangement with Premier Aftercare Recovery Service, ("PARS"). PARS is a Company controlled by Neil Muller, a shareholder of the Company and prior officer of the Company, that provided consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration was $14,583 per month. During the three and nine months ended September 30, 2019 and 2018, the Company incurred $0 as consulting fees and expense reimbursements. As of September 30, 2019 and December 31, 2018, there was an unpaid balance of $0 and $32,318, respectively.

 

The Company has an arrangement with Felix Financial Enterprises ("FFE"). FFE is a Company controlled by Lourdes Felix, an officer of the Company that provides consulting services to the Company. Until June 13, 2018, there was no formal agreement between the parties and the amount of remuneration is $14,583 per month. During the three and nine months ended September 30, 2019, the Company incurred $43,750 and $131,250, respectively, as consulting fees. During the three and nine months ended September 30, 2018, the Company incurred $70,750 and $151,548, respectively, as consulting fees. As of September 30, 2019 and December 31, 2018, there was an unpaid balance of $0.

 

 The Company has an arrangement with Soupface LLC ("Soupface"). Soupface is a Company controlled by Brady Granier, an officer of the Company that provides consulting services to the Company. Until June 13, 2018 there was no formal agreement between the parties and the amount of remuneration is $15,833 per month. For the three and nine months ended September 30, 2019, the Company incurred $47,500 and $142,500, respectively, as consulting fees. For the three and nine months ended September 30, 2018, the Company incurred $75,000 and $162,500, respectively, as consulting fees. As of September 30, 2019 and December 31, 2018, there was an unpaid balance of $0.

 

The Company has an arrangement with Mr. Tom Welch, VP of Operations. Until June 13, 2018 there was no formal agreement between the parties and the amount of remuneration is $12,500 per month. For the three and nine months ended September 30, 2019, the Company incurred $37,500 and $112,500, respectively, as consulting fees. For the three and nine months ended September 30, 2018, the Company incurred $57,500 and $128,032, respectively, as consulting fees. As of September 30, 2019 and December 31, 2018, there was an unpaid balance of $0.

 

On July 28, 2016, the Company formed BioCorRx Pharmaceuticals, Inc. for the purpose of developing certain business lines. In connection with the formation, the newly formed sub issued 24.2% ownership to current or former officers of the Company, with the Company retaining 75.8%. During the nine months ended September 30, 2019, BioCorRx Pharmaceuticals, Inc. began limited operations and there was no operation prior to that.

 

 

In March 2019, in the Company entered into a Subscription and Royalty Agreement (the "Subscription and Royalty Agreement"), with Louis and Carolyn Lucido CRT LLC, managed by Mr. Louis Lucido, a member of the Board (Note 12). The Company received an aggregate gross proceeds of $3,000,000 in April 2019 and $0 royalty was due at September 30, 2019.

 

As of September 30, 2019, the Company's related party payable was $241,629, which comprised of compensation payable and interest payable to directors. The Company also issued 20,021 shares of common stock to directors during the nine months ended September 30, 2019.