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Note 12 - Related Party Transactions
12 Months Ended
Dec. 31, 2015
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. There was no compensation expense paid in common shares to related parties during the year ended December 31, 2015.

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

 

Executive officers

$952,356

Directors

269,730

Founder, stockholder

399,600

Family of officers and directors

78,029

 

 

Total related parties

$1,699,715

 

 

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, 2015 and 2014:

 

 

2015

2014

 

 

 

Founder, stockholder

$187,046

$130,619

Family of officers and directors

225,901

193,118

 

 

 

Total related parties

$412,947

$323,737

 

 

 

 

As of December 31, 2015, we had convertible debentures of $5,000, $46,600, $112,663 and $8,000 payable to four individual related parties. The outstanding principal and interest are convertible into shares of our common stock at conversion prices ranging from $0.0025 to $30 per share. We also had a short-term, non-interest bearing note payable of $5,000 to a related party as of December 31, 2015.

 

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

 

Accrued interest payable to related parties totaled $30,731 and $17,461 at December 31, 2015 and 2014, respectively.

 

As of December 31, 2015 and 2014, we had stockholder advances payable to related parties totaling $83,023 and $88,964, respectively.