Note 6 - Related-Party Transactions

Founders’ Shares - On January 23, 2017, Red Cat issued 183,665,443 shares of its common stock as Founders’ Shares for $4,550. 156,418,372 were issued to Red Cat’s founder and CEO and 27,247,071 to an outside consultant who assisted with the Red Cat’s formation and early organization.

Initial Investment - On January 26, 2017, the same outside consultant purchased 4,036,603 shares of common stock for $100,000.

Shares Issued for Services - On May 7, 2019, the same outside consultant was issued 1,883,792 shares valued at $70,000 for legal services provided.

Office Space Rental – Red Cat rented office space from Red Cat’s CEO for the 2019 and 2018 years for $8,100 and $7,200. This office space arrangement ended March 31, 2019. Rent expense is classified within general and administrative expenses.