NOTE 13 - RELATED PARTY TRANSACTIONS

As of September 30, 2021, the $67,273 due to related parties was comprised of; accrued salary due to David Phipps of $17,227, accrued salary and expenses due to Charles M. Fernandez of $37,237, accrued salary and expenses due to Sarwar Uddin, Theresa Carlise and Paul Thomson of $3,771, $3,740 and $5,298, respectively. Total related party payments due as of September 30, 2021, and December 31, 2020, are $67,273 and $102,060, respectively. These related party payables were non-interest bearing and have been repaid in full.

The Company’s UK subsidiary, GTC has an over-advance line of credit with HSBC, for working capital needs. The over-advance limit is £25,000 or $33,566 at an exchange rate of 1.34262, with interest at 3.95% over Bank of England’s base rate or current rate of 4.05% variable. The advance is guaranteed by David Phipps, the Company’s Chief Executive Officer. The Company has an American Express account for Orbital Satcom Corp. and an American Express account for GTC, both in the name of David Phipps who personally guarantees the balance owed.

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company employs three individuals who are related to Mr. Phipps. The individuals earned gross wages totaling $107,042 and $58,149, for the nine months ended September 30, 2021 and 2020, respectively.