Note 4 - Related Party Transactions

12 Months Ended

Dec. 31, 2010

Note 4 - Related Party Transactions:

Note 4 - Related Party Transactions

NOTE 4 - RELATED PARTY TRANSACTIONS

The Company has an agreement with the Company's former President and CEO, pursuant to which he is entitled to three percent royalties of gross revenues earned with any product based on his inventions. No royalties were outstanding, paid or earned in fiscal years 2012 and 2011.

Note Receivable – Related Parties

On May 15, 2012, the Company entered into a note receivable with a shareholder for $63,347. The note receivable accrues interest at six percent per annum, is due on August 31, 2012 and is secured by 138,900 shares of the Company’s common stock. On that date, the loan agreement was extended without term.

Receivables – Related Parties

During the year ended June 30, 2012, the Company accrued a license fee and the related V.A.T. and accrued interest for the use of its wound spray technology in the amount of $150,854. The Company has also accrued $10,272 of royalty income from the sales of products using its wound spray technology. The Company agreed to defer the collection of the license fee and royalty to January 1, 2013. The license fee and royalty are due from a joint venture in which the Company holds a 25 percent equity interest.

Related Party Loans Payable

As of June 30, 2012 and 2011, the Company had a note payable to related parties of $18,865 and $-0-, respectively. The note payable is unsecured, accrues interest at 5 percent per annum and is due on April 5, 2013 and early payment allowed without penalty.