Related Party Transactions and Balances

6 Months Ended

Feb. 29, 2020

7. Related Party Transactions and Balances

The Company’s transactions with related parties were carried out on normal commercial terms and in the course of the Company’s business. Other than disclosed elsewhere in the Company’s condensed consolidated financial statements, related party transactions are as follows:

a) Related party balances

Advances from related parties include:

	●	At February 29, 2020, the Company owed $232,000 (August 31, 2019 - $232,000) in advances payable to the President of the Company. These advances are unsecured and bear interest at 3% per annum. Accrued interest payable to the President totaled $42,968 at February 29, 2020 (August 31, 2019 - $39,498).

	●	At February 29, 2020, the Company is owed $16,139 (August 31, 2019 - $8,609) in advances receivable by the CEO of the Company. This balance bears no interest and has no repayment terms.

Accounts payable and accrued liabilities include:

●

At February 29, 2020, the Company owed $1,660,794 (August 31, 2019 - $1,481,649) in consulting fees to companies controlled by the President, CEO, and a major shareholder.

b) Related party transactions

During the six months ended February 29, 2020, the Company had the following transactions with related parties:

●

The CEO of the Company made net advances of $7,350 during the six months ended February 29, 2020. These advances are unsecured, bear no interest and have no repayment terms.

During the six months ended February 29, 2020 and 2019, the Company had the following transactions with related parties:

	●	Consulting fees expense of $209,307 (six months ended February 28, 2019 - $81,765) in connection with services provided by the companies controlled by the President and CEO.

	●	Interest expense of $5,863 (six months ended February 28, 2019 - $5,534) in connection with advances owing to the President and other shareholders of the Company.

NOTOX TECHNOLOGIES CORP. 10-Q