Note 12- Related Party Transactions

9 Months Ended

Sep. 30, 2014

Notes

Note 12- Related Party Transactions

NOTE 12– RELATED PARTY TRANSACTIONS

Several of the consulting agreements discussed in Note 11 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 during the nine months ended September 30, 2014.

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

Founder, stockholder	$108,287
Family of officers and directors	182,597
Total related parties	$290,884

As of September 30, 2014, we had convertible debentures of $5,000, $12,500, $46,600 and $8,000, which are further discussed in Note 5, payable to three 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 $0.01 to $30 per share.

Accrued interest payable to these related parties totaled $20,895 at September 30, 2014.