Amounts Due to Related Parties and Loans Payable to Stockholders

9 Months Ended

Sep. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

3.           Amounts Due to Related Parties and Loans Payable to Stockholders

From February 2007 until September 30, 2011, we received a number of loans from shareholders and loans from an unrelated third party.  As of September 30, 2011, we had received loans of $613,814 (Euro 225,000; CAD 62,300; USD 251,800) (December 31, 2010 - $604,653) from shareholders, loans of $118,540 (CAD 10,000; USD 109,000) (December 31, 2010 - $100,000) from a related party and loans of $34,540 (CAD 10,000; USD 25,000) (December 31, 2010 - $25,000) from an unrelated third party. All of the loans bear interest at 6% per annum.  The loans were made in 3 different currencies, Euros, Canadian Dollars and US Dollars.  All amounts reflected on these financial statement are expressed in US Dollars.  Repayment of the loans is due on closing of any future financing arrangement by us.  The balance of accrued interest of $156,671 and $123,104 is included in accounts payable and accrued expenses at September 30, 2011 and December 31, 2010, respectively.  Interest expense recognized on these loans was $11,504 and $34,489 for the three and nine months ended September 30, 2011, respectively and $10,946 and $31,794 for the three and nine months ended September 30, 2010, respectively.

At September 30, 2011 and December 31, 2010, we had amounts due to related parties of $438,533 and $282,500, respectively.  These amounts include $136,100 at September 30, 2011 and December 31, 2010, payable to three directors for services rendered during 2007. This amount is to be paid part in cash and part in stock at a future date with the number of common shares determined by the fair value of the shares on the settlement date. The amounts owing bear no interest, are unsecured, and have no fixed terms of repayment.