RELATED PARTIES | 9 Months Ended |
Sep. 30, 2013 |
Related Parties | ' |
RELATED PARTIES | ' |
NOTE 3 – RELATED PARTIES |
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Allocation of Expenses |
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During the nine months ended September 30, 2013, Bon Amour International, LLC (“BAI”), the majority stockholder of the Company, incurred certain costs associated with the Company’s operations, including human resource costs, travel expense, marketing expense and occupancy costs, totaling $257,301. In January 2013, the Company made a payment to BAI in the amount of $18,668. |
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In April 2013, the Company applied $29,892 to partially offset accounts receivables with BAI. At September 30, 2013 the outstanding balance associated with this allocation was $208,741. |
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Related Party Loans |
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During 2012 and the nine months ended September 30, 2013, BAI advanced the Company $14,087 and $217,918, respectively. During the nine months ended September 30, 2013, the Company reduced the outstanding related party loan balance with BAI with (i) a $2,000 payment to a BAI corporate credit card account issued in the name of Nathan Halsey, our sole officer and director, (ii) an application of a $1,888 refund paid to BAI in error by one of the Company’s vendors, (iii) a cash repayment of $1,150, and (iv) an application of $172,873 to partially offset accounts receivables with BAI of $202,765 (see Allocation of Expenses above). BAI is controlled by Mr. Halsey. As of September 30, 2013, the Company reported $54,094 as the related party loan amount due to BAI. |
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During the year ended December 31, 2012, Bonamour Asia, LLC (“Bonamour Asia”), an entity solely owned by Mr. Halsey, advanced the Company $7,000 in the form of direct payments to a vendor to the Company. In September 2013, the Company repaid the advances from Bonamour Asia in full. |
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Advances to Officer |
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During October and November 2012, the Company advanced Mr. Halsey $25,000. The amount was repaid in full in February 2013. |
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Occupancy Cost Allocation |
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BAI provided office space for the Company at no charge from December 30, 2010 to October 31, 2012. In November 2012, BAI began billing the Company for office occupancy costs at a rate of $5,000 per month. In July 2013, BAI reduced its office occupancy cost rate to $1,000 per month, all of which is included in the Allocation of Expenses discussed above. Management considers the Company's current office space arrangement adequate. |