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14. RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract]  
14. RELATED PARTY TRANSACTIONS

Transactions with related parties are incurred in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to between the related parties. The Company’s current and former officers and stockholders have advanced funds on a non-interest bearing basis to the Company for travel related and working capital purposes. The Company has not entered into any agreement on the repayment terms for these advances. As of September 30, 2013 and December 31, 2012, the amounts due to related parties were $723,885 and $246,655, respectively. During the nine months ended September 30, 2013, the Company expensed $133,230 as consulting fee payable to two directors of the Company, $58,334 as consulting fee payable to two officers of the Company, $243,640 as consulting fee payable to a company owned by two officers, one of which is also a director and expensed $8,342 to a consultant that is related to an officer and director of the Company.  During the period the Company also expensed $58,055 to administrative payable to two individuals who are related to a director of the Company.  During the period, the Company settled $50,000 of fees owing to an officer of the Company with the issuance of an unsecured subordinated convertible debenture.

 

During the nine months ended September 30, 2013, an officer and director of the Company made cash payments to and on behalf of the Company in amounts of $380,254. During the nine month period ended September 30, 2013, the Company repaid $210,000.  The settlement included cash payments of $60,000, a settlement of $50,000 for 1,428,571 common shares and a settlement of $100,000 for the issuance of an unsecured subordinated convertible debenture.  At December 31, 2012 the balance owing to this related party for cash advances was $95,024. At September 30, 2013 the balance owing was $332,736 including interest.  Interest is accrued on a monthly basis at 1.5%; at September 30, 2013, $43,647 in interest had been accrued.