Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 |
Notes | ' |
Related Party Transactions | ' |
3. Related Party Transactions |
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Notes and Convertible Notes Payable |
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On October 20, 2012, in accordance with an Asset Purchase Agreement, the Company and a current officer and director of the Company entered into a one year, 6% Promissory Note for $150,000, prior to him joining the Company. Accrued interest on the Promissory Note totaled $1,775 at December 31, 2012. During the nine months ended September 30, 2013, the Company repaid the note and a total of $2,405 in accrued interest. |
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On October 31, 2012, the Company and an officer and director of the Company entered into a one year, 10% Senior Convertible Note for office equipment totaling $20,955 and supplies totaling $761, or a total of $21,716. The principal amount of the Senior Convertible Note can be convertible, at the sole option of the holder and in whole or in part, into shares of common stock of the Company at a conversion price to be determined by the Board of Directors of the Company at or prior to the maturity date. The Senior Convertible Note and the payment of the principal thereof and interest thereon shall at all times and in all respects constitute the Senior Indebtedness of the Company and shall not be junior or subordinate in right of payment to any other indebtedness of the Company. Accrued interest on the Senior Convertible Note totaled $4,154 at September 30, 2014. |
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On December 31, 2012, the Company and an officer and director of the Company entered into a one-year, 10% Senior Convertible Note for cash advances totaling $20,700 and expenses paid on behalf of the company totaling $9,508, or a total of $30,208. During the nine months ended September 30, 2013, the Company repaid the note and a total of $375 in accrued interest. |
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From May 2013 through September 2014, the Company borrowed a total of $188,975 and repaid $37,268 from James Palladino, an officer and director of the Company of short-term loans with and interest rate of 6% per annum. The balance of this note as of September 30, 2014 was $173,423. |
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Consulting Expense |
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At September 30, 2014 and December 31, 2013, the Company owes an officer $303,800 and $207,800, respectively, for consulting expense which is included in accounts payable - related party. |
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| 9/30/14 | 12/31/13 |
Related Party Note Payable Jim-Paladino | 173,423 | 120,790 |
Interest rate - Related party note | 6% | 6% |
Due to Jim Paladino for Consulting fees | 303,800 | 207,800 |
Convertible Note payable Related Party | - | 21,716 |
Accrued Interest - Related party Notes | 6,430 | 2,535 |
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