RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 8: Related Party Transactions

During the nine months ended September 30, 2013, the Company entered into transactions with certain officers and directors of the Company as follows:

(a)incurred $288,000 (September 30, 2012 - $173,500) in management fees and $99,000 (September 30, 2012 - $67,500) in research and development services paid to officers and directors during the period;

(b)recorded $40,238 (September 30, 2012 - $31,333) in stock based compensation for the fair value of options granted to management that were granted and or vested during the period;

(c)converted $83,000 (September 30, 2012 - $50,000) of debt due to related parties during the period, which were settled with shares;

(d)issued $nil (September 30, 2012 - $38,000) in promissory notes to an officer and director of the Company (Note 5).

(e)converted $567,729 (September 30, 2012 - $nil) of payable into convertible notes to officers, consultant and a director of the Company (Note 5).

All related party transactions (other than stock based consideration) involving provision of services were recorded at the exchange amount, which is the amount established and agreed to by the related parties as representing fair value. The Company accounted for the debt settlement transactions with related parties at management’s estimate of fair value, using amounts similar to arm’s length settlements for debt settled.

At September 30, 2013, the Company had amounts owing to directors, consultants and officers of $381,846 (December 31, 2012 - $293,805). Amounts due to related parties are unsecured, non-interest bearing and have no specific terms of repayment.