Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2014

Notes

Note 12 - Related Party Transactions

Note 12 – Related Party Transactions

Several of the consulting agreements discussed in Note 9 are with related parties.  Related parties consist primarily of our executive officers, directors and individuals affiliated through family relationships with our officers and directors.  

Of the total compensation expense paid in common shares during the years ended December 31, 2014 and 2013, the following amounts were paid to related parties:

	Year Ended December 31,
	2014	2013
Executive officers	$952,356	$669,730
Directors	269,730	238,370
Founder, stockholder	399,600	261,470
Family of officers and directors	78,029	126,560
Total related parties	$1,699,715	$1,296,130

As discussed above, the compensation expense paid in stock is calculated based on the market price of the common stock on the effective date of agreement and amortized over the period over which the services are provided to the Company.

In addition to compensation expense paid in stock, we had the following amounts paid for consulting and professional fees to related parties during the years ended December 31, 2014 and 2013:

	Year Ended December 31,
	2014	2013
Founder, stockholder	$130,619	$204,379
Family of officers and directors	193,118	105,457
Total related parties	$323,737	$309,836

As of December 31, 2014 we had convertible debentures of $5,000, $46,600 and $8,000 payable to three family members of our executive officers.  The outstanding principal and interest are convertible into shares of our common stock at conversion prices ranging from $0.01 to $30 per share.

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 price of $30 per share.

Accrued interest payable to these related parties totaled $17,461 and $14,821 at December 31, 2014 and 2013, respectively.

As of December 31, 2014 and 2013, we had stockholder advances payable to family members of our executive officers and to a founder totaling $88,964 and $27,964, respectively.