Other Related Party Transactions | Office space We currently occupy approximately 1,500 square feet of office and garage space at 3500 75th Street West, Rosamond, California. We share this space with Matthew D. Jackson, our Chief Marketing Officer. Presently, we do not incur any expenses for the use of this facility. Line of credit from related party The Company has two line of credit agreements with related parties. DEVCAP Partners, LLC is also the majority shareholder in the Company. General Pacific Partners is owned by the party that owns DEVCAP Partners, LLC. See Note 4 for further disclosure. Consulting expense to related party (DEVCAP Partners, LLC) On January 1, 2014, the Company executed a three year consulting agreement with DEVCAP Partners, LLC, (“DEVCAP”), whereby the Company agreed to pay $7,500 a month for consulting services to be provided to the Company such as marketing, architectural development, accounting, finance, corporate structure and tax planning. For the three and nine months ended September 30, 2016, the Company recorded consulting fee expense to DEVCAP of $22,500 and $67,500, respectively. For the three and nine months ended September 30, 2015, the Company recorded consulting fee expense to DEVCAP of $22,500 and $57,389, respectively. The amount due but unpaid was $120,000 and $52,500 at September 30, 2016 and December 31, 2015, respectively, and was included on the balance sheet as accounts payable- related parties. Consulting expense to related party (Ray Gerrity) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Executive Officer, Ray Gerrity, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Executive Officer. For the three and nine months ended September 30, 2016, the Company recorded consulting fee expense of $2,500 and $7,500, respectively. For the three and nine months ended September 30, 2015, the Company recorded consulting fee expense of $2,500 and $7,500, respectively. The amount due but unpaid was $17,500 and $10,000 at September 30, 2016 and December 31, 2015, respectively, and was included on the balance sheet as accounts payable - related parties. Consulting expense to related party (Robert Wilson) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Financial Officer, Ron Wilson, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Financial Officer. For the three and nine months ended September 30, 2016, the Company recorded consulting fee expense of $2,500 and $7,500, respectively. For the three and nine months ended September 30, 2015, the Company recorded consulting fee expense of $2,500 and $7,500, respectively. The amount due but unpaid is $12,500 and $5,000 at September 30, 2016 and December 31, 2015, respectively, and was included on the balance sheet as accounts payable - related parties. Purchase of asset through accounts payable On June 13, 2016, the Company purchased equipment for $5,859 from a company whose president is a family member of the majority shareholder of Company. The outstanding related party payable was paid July 18, 2016. Sale of asset to related party On April 16, 2016, the Company returned a 1966 Ford Mustang previously purchased from DEVCAP Partners, LLC in exchange for cancellation of 250,000 shares of stock. The value of the cancelled shares was deemed to be the net book value of the vehicle on the date of transfer, $33,107. The vehicle was purchased with the intent of using it to tow trailers displaying advertising. It was subsequently determined that the vehicle was not suitable for its intended purpose and was returned to the original owner. |