Receivables, Loans, Notes Receivable, and Others

3 Months Ended

Mar. 31, 2012

Receivables, Loans, Notes Receivable, and Others

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

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

From February, 2007 until March 31, 2012 the Company received a number of loans from stockholders, related parties and unrelated third parties.  As of March 31, 2012 the Company had received loans of $614,271 (Euro 225,000; CAD 62,300; $251,800) (December 31, 2011 - $604,930: Euro 225,000; CAD 62,300; $251,800) from stockholders, loans of $119,025 (CAD 10,000; $109,000) (December 31, 2011 – $118,833: CAD 10,000; $109,000) from a related party and loans of $45,025 (CAD 10,000; $ 35,000) (December 31, 2011 – $ 44,833: CAD 10,000; $35,000) from unrelated third parties. 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 statements are expressed in US Dollars.  Repayment of the loans is due on closing of any future financing arrangement by the Company.  The balance of accrued interest of $179,849 and $156,015 is included in accounts payable and accrued expenses at March 31, 2012 and December 31, 2011, respectively.  Interest expense recognized on these loans was $11,675 for the three months ended March 31, 2012, compared to $11,233 for the three months ended March 31, 2011.

At March 31, 2012 and December 31, 2011 the Company had amounts due to related parties of $591,729 and $516,719, respectively.  This amount includes $136,100 at March 31, 2012 and December 31, 2011, payable to two former directors and a current director 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.