XML 107 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2013
RELATED PARTY TRANSACTIONS:  
Related Party Transactions
9. RELATED PARTY TRANSACTIONS
Related  parties are natural  persons or other  entities  that have the ability,
directly  or  indirectly,  to  control  another  party or  exercise  significant
influence  over the other party in making  financial  and  operating  decisions.
Related parties include other parties that are subject to common control or that
are subject to common significant influences.
DUE FROM FACTOR
AWWT, BPI & Tyree have entered into discount factoring agreements with a related
party ("Factor"), which shares common ownership and management with the Company,
under which eligible  accounts  receivable will be factored.  The Factor assumes
credit risk for all credit-approved  accounts. The Company pays to the Factoring
a commission on each accounts  receivable  purchased equal to (a) 1% for each 60
days that such accounts  receivable is outstanding  and (b) after the initial 15
day  period,  an  additional  1% for  each 30 days or part  that  such  accounts
receivable  is  outstanding.  The Company  can request  advances of up to 80% of
factored  accounts  based on the  customer  credit  limit under the terms of the
factor  agreements  which controls the activity under the agreement.  The factor
agreement  is secured  by the  eligible  accounts  receivable.  The factor  fees
amounted  to  $124,013  and $0 for the six months  ended June 30, 2013 and 2012,
respectively.
LOANS PAYABLE
Loans from a related party consist of the following at:
                                                   June 30,         December 31,
                                                     2013               2012
                                                  ----------         ----------
Loan and  security  agreement  with  Capstone
Capital Group,  LLC which expires on November
1, 2013  bearing  interest  at 18% per annum.
Maximum borrowing of $4,000,000                   $3,662,306         $  764,799
Loan and  security  agreement  with  Capstone
Capital  Group,  LLC which expires on May 15,
2015  bearing  interest  at  18%  per  annum.
Maximum borrowing of $1,000,000                      512,270            473,820
Loan  and  security  agreement  with  Stephen
Tyree  which  expires  on  November  5,  2014
bearing interest at 5.0% per annum.                   15,264             50,417
                                                  ----------         ----------
Total  loans and  amounts  payable to related
parties                                           $4,189,840         $1,289,036
                                                  ==========         ==========
Interest  expense for these loans  amounted to $237,014 and $165,879 for the six
months ended June 30, 2013 and 2012, respectively.