Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2020
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

As of December 31, 2019, the Company had outstanding convertible notes payable - related parties and an advance due to a related party of $830,500 and $29,000, respectively, that were either converted or repaid during the year ended December 31, 2020.

See Note 6 – Notes Payable for additional details associated with the issuance, repayment and conversion of notes payable and convertible notes payable to related parties.

Related Party Advances

During the year ended December 31, 2019, the Company advanced an aggregate of $75,000 to OneQube, Inc. (“OneQube”) in connection with a non-binding letter of intent between the parties that was eventually mutually terminated by the parties. $75,000 was repaid by OneQube as of December 31, 2019. The Company’s then-Chief Executive Officer is a significant stockholder of OneQube and serves as Chairman of the Board of OneQube.

Sublease Agreement

In March 2019, Kubient entered into a sublease agreement with OneQube that provided for rent payments by Kubient to OneQube equal to $600 per desk per month and ends in June 2021. During the year ended December 31, 2019, rent expense associated with the OneQube sublease was $91,169, which is included in general and administrative expenses on the consolidated statements of operations.

On June 18, 2020, the Company’s sublease agreement was terminated effective March 31, 2020. Pursuant to the termination agreement, the parties agreed that the Company shall have no obligation to pay OneQube any amount arising from its obligations under the sublease for rent during the period from January 1 to March 31, 2020. As a result of the termination and release, during the year ended December 31, 2020, the Company recognized the remaining liability and recorded a contribution of capital of $33,738.