Note 12- Related Party Transactions

6 Months Ended

Jun. 30, 2014

Notes

Note 12- Related Party Transactions

NOTE 12– RELATED PARTY TRANSACTIONS

Several of the consulting agreements discussed in Note 10 are with related parties.  Related parties consist primarily of our executive officers, directors and individuals affiliated through family relationships with our officers and directors.  Compensation expense paid in common shares to related parties was $1,639,775 and $120,833 during the six months ended June 30, 2014 and 2013, respectively.

In addition to compensation expense paid in stock, we had the following amounts paid for consulting and professional fees to related parties during the six months ended June 30, 2014 and 2013:

	2014	2013
Founder, stockholder	$58,224	$84,779
Family of officers and directors	97,086	11,457
Total related parties	$155,310	$96,236

As of June 30, 2014, we had convertible debentures of $5,000, $12,500, $8,000 and $48,800, which are included in the table at Note 5, payable to three family members of our executive officers.  As of December 31, 2013, we had convertible debentures of $5,000 and $12,500 payable to two family members of our executive officers.  The outstanding principal and interest are convertible into shares of our common stock at a conversion prices ranging from $0.06 to $30 per share.

Accrued interest payable to these related parties totaled $19,278 and $14,821 at June 30, 2014 and December 31, 2013, respectively.