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Related Party Transactions
12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

16. Related Party Transactions

In March 2002 the Company executed a binding agreement with its CEO, who is also a principal stockholder, to fund up to $6.1 million. Under the terms of the agreements, the Company can draw amounts as needed to fund operations. Amounts drawn bear interest at the BBA LIBOR Daily Floating Rate plus 1.4 percentage points (2.5865% and 2.431% per annum at December 31, 2015 and 2014, respectively), payable monthly and were to become due and payable on December 31, 2005 or upon a change in control of the Company or consummation of any other financing over $7.0 million. Beginning in March 2006, annually, through February 2012, the maturity date for the agreement was extended from December 31, 2007 to December 31, 2017.  Refer to Note 10.

 

At December 30, 2015, the Company had drawn the full funding amount under the initial agreement of $6.1 million plus additional advances of $5,824,614. At December 31, 2014 the Company had drawn the full funding amount under the initial agreement of $6.1 million plus an additional $4,474,367. Additionally, the Company has an unsecured loan outstanding from a member of the board of directors who is also a significant stockholder, totaling $0 and $25,000 at December 31, 2015 and December 31, 2014, respectively. The note bears interest at a rate of 5% per annum and is due November 22, 2015. On November 21, 2015 the board of director member forgave the principal amount of $25,000 and accrued interest of $1,386. The Company recorded the forgiveness as a capital contribution.

 

On February 13, 2013 the Company issued 882,353 shares of its common stock valued at $0.17 per share as payment for the note payable in the amount of $150,000 from a stockholder who is also a director. On April 8, 2013 the Company issued 50,656 shares of its common stock valued at $0.18 per share as payment for the interest, in the amount of $9,118, on the $150,000 note payable. Additionally, the Company has unsecured loans outstanding from one board member, who is also a significant stockholder, totaling $25,000 at December 31, 2014.  On November 21, 2015 the board of director member forgave the principal amount of $25,000 and accrued interest of $1,386. The Company recorded the forgiveness as a capital contribution.  The note bears interest at a rate of 5% per annum and is due November 22, 2015. On February 4, 2015 the Company received from the abovementioned stockholder who is also a director, a certificate in the amount of 882,353 shares of its common stock valued at $0.17 per share which had been issued in error as payment for the note payable in the amount of $150,000. The certificate was reissued in the amount of 588,235 in exchange for the note payable in the amount of $100,000, the remaining $50,000 was recorded as a capital contribution in the year ended December 31, 2014. The Company recorded the transaction retroactive to December 31, 2014. See Notes 10 and 14.

 

On October 20, 2009, the Company entered into a consulting agreement with Boxwood Associates, Inc., whereby the Company pays $2,000 monthly for management and strategic development services performed. The contract remains in effect until terminated by either party providing 30 days written notice. During each of 2015 and 2014 we paid Boxwood Associates, Inc. $24,000 under this agreement. Mr. Dominick Telesco, a member of our board of directors, is President of Boxwood Associates, Inc.