Wowio Inc. (WWIO)

[otcwhiz]

From 10Q

Alliance and Altounian have ownership interests in Akyumen Technologies, Corp. (“Akyumen”). At March 31, 2016 and December 31, 2015, Alliance and Altounian owned less than 1% of Akyumen individually and collectively. During the three months ended March 31, 2015, Akyumen provided certain software development and technology related services to the Company for $250,000. Such costs were expensed to general and administrative expense in the accompanying consolidated statement of operations. In addition, Akyumen engaged the Company for an advertising campaign on the Company’s websites. The advertising campaign was for $150,000 for the period April 1, 2014 through June 30, 2015. The Company recorded $25,000 in advertising revenue for the three months ended March 31, 2015, in the accompanying consolidated statement of operations.

In December 2015, the Company received $100,000 from Akyumen as an advance on a potential future investment into the Company. During the three months ended March 31, 2016, the Company received another $514,000 from Akyumen as an advance on a potential future investment into the Company. Such amounts are due on demand and are non-interest bearing, if the potential investment is not consummated. During the period from April 1, 2016 through May 16, 2016, Akyumen advanced on additional $62,500. Such amounts have been included in related party payables in the accompanying consolidated balance sheets at March 31, 2016 and December 31, 2015.