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RELATED PARTY TRANSACTIONS
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The following transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
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Nine months ended August 31, 2017
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Effective July 21, 2016, Bryan Ganz was elected as a director of the Company. Prior to his appointment, effective May 1, 2016, the Company executed a one-year consulting agreement with Northeast Industrial Partners, LLC (“NEIP”), a Corporation in which the said director has an ownership interest. In January, 2017, the Company issued
589,414
common shares at a price of $0.1142
per share to satisfy the payment of USD $50,000
due on November 15, 2016. In March 2017, the Company made the third share issuance and issued
503,251
common shares at a price of $0.0994
per share to satisfy the payment of USD $50,000
due on February 15, 2017. In May 2017, the Company made the fourth and final share issuance and issued
534,941
common shares at a price of $0.0935
per share to satisfy the payment of USD $50,000
due on May 15, 2017. Effective May 1, 2017, the Company and NEIP renewed the agreement for the period of time until such date as either of them terminates the original contract on not less than
15
days prior written notice to the other party. For services rendered by NEIP during the extension, SDI shall pay NEIP $62,500
within
15
days following every consecutive three-month period during the extension. The Company accrued expense for $62,500
for the quarter ended August, 2017 and this expense was settled and paid subsequently to the quarter by issue of shares (see also Note 13-subsequent events). In addition, the Company executed a one-year back-office accounting and administration services agreement with NEIP effective January 1, 2017 to pay compensation of $7,500
per month. The Company expensed $60,000
for services provided during the nine- month period ended August 31, 2017.
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The Company expensed $27,000
for services provided by the CFO of the Company and $32,300
for services provided by two Corporations in which the CEO has an ownership interest, in accordance with the consulting contract. In addition, the CEO was paid a salary of $78,500
during the nine- month period ended August 31, 2017.
During the nine- month period ended August 31, 2017, the Company issued options to directors. The Company expensed $169,970
for fair value of options which vested during this period.
Nine months ended August 31, 2016
The directors were compensated as per their consulting agreements with the Company. The Company expensed a total of $208,400
as management fees to two of its directors in their role as officers in accordance with their consulting contracts, which included $57,600
paid on full and final settlement to one director in his role as CEO on his resignation and termination effective July 15, 2016, and also expensed a total of $5,900
as automobile allowance. In addition, the Company expensed $42,200
as a consulting fee to an independent director for services provided.
The Company expensed $16,400
for services provided by the CFO of the Company and $154,900
for services provided by a Corporation in which the Chief Operating Officer (who was later elected interim CEO and President effective July 16, 2016) has an ownership interest, in accordance with the consulting contract.
Effective July 21, 2016, Bryan Ganz was elected as a director of the Company. Prior to his appointment, effective May 1, 2016, the Company executed a one-year consulting agreement with a Corporation in which the said director has an ownership interest. The said Corporation was paid cash of $25,000
in May, 2016 and $25,000
in June, 2016.
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