Related Party Transactions
|9 Months Ended|
Sep. 30, 2018
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
NOTE 13 – RELATED PARTY TRANSACTIONS
The following is a description of the transactions we have engaged in with our directors, director nominees and officers and beneficial owners of more than five percent of our voting securities and their affiliates:
In October 2016, the Company received a purchase order from RENS Agriculture, an affiliate of Rens Technology Inc., and Ren Ren, one of the Company’s directors, to purchase $116 of our product. The Company received a 50% deposit in November 2016 in order to manufacture the product. The goods were shipped in January 2017 and received in China in March 2017. The Company has not received payment for the order to date. As a result of the ongoing litigation (see Note 14), the Company recorded an allowance for bad debt of $59 for the nine months ended September 30, 2017 related to the receivable due from RENS Agriculture.
On August 31, 2018, the Company issued an unsecured promissory note in the principal amount of $750 (the “Note”) to Joseph Mannello, our CEO. The Note bears interest at a rate of 5% per annum and matures on August 31, 2019 (the “Maturity Date”). The principal amount of the Note and any accrued interest can be repaid at any time prior to the Maturity Date. The Note includes standard events of default including non-payment of the principal or accrued interest due on the Note. As of September 30, 2018, the Company accrued $2 of interest expense on the Note. Upon an event of default, all obligations under the Note will become due and payable.
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://fasb.org/us-gaap/role/ref/legacyRef