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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

17. Related Party Transactions

Beginning on March 28, 2002 the Company executed a binding agreement with one of its principal stockholders, who is also the Chairman of the Board and an Executive officer, 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 (3.62% and 2.5865% per annum at December 31, 2017 and 2016, 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 annually from December 31, 2007, to December 31, 2017. On November 16, 2017, our Chairman and Chief Executive Officer extended the due date of the funding commitment to December 31, 2018. Refer to Note 11.


During the year ended December 31, 2017, the Company had drawn the full funding amount under the initial agreement of $6.1 million plus additional advances of $7,963,349. On November 11, 2016, the Company and its Chairman and CEO entered into a Conversion Agreement pursuant to which $6,100,000 of principal and accrued but unpaid interest due him for working capital advanced to the Company as described in Notes 11 and 15 was converted into 20,333,333 shares of the Company's common stock at a conversion price of $0.30 per share in full satisfaction of such amount.


Additionally, the Company had unsecured loans outstanding from a former member of the board of directors who is also a significant stockholder, totaling $100,000 at December 31, 2016.  The notes bear interest at a rate of 5% per annum and are due upon demand.  During the year ended December 31, 2017, we repaid him $50,000 and in addition, he forgave $50,000 and accrued interest of $2,664. The forgiveness was treated as a capital contribution. In November 2017, the Company received an additional loan in the amount of $25,000 from this same former member of the Board of Directors. The loan bears interest at a rate of 5% per annum and is due December 31, 2018. Refer to Note 11.


In November 2017, the Company received an additional loan in the amount of $25,000 from this same former member of the Board of Directors. The loan bears interest at a rate of 5% per annum and is due December 31, 2018.


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 2017 and 2016 we paid Boxwood Associates, Inc. $24,000 under this agreement. A former member of our board of directors is President of Boxwood Associates, Inc.