Related Parties

6 Months Ended

Jun. 30, 2011

Related Parties

Related Parties

10. Related Parties

As of June 30, 2011, Synergy’s majority shareholder, Callisto, owns 47.4 % of its outstanding shares. Synergy occupies corporate office space in New York City under a month to month sharing arrangement with Callisto. Rent is allocated from Callisto monthly based on the square footage of office space occupied by Synergy. On July 21, 2011 Callisto extended its lease on Suite 1609 from June 30, 2011, to March 31, 2012; at a monthly rent $16,414.

As of June 30, 2011 Synergy had advanced Callisto $ 1,378,473 which is Callisto’s share of Synergy payments for common operating costs since July 2008. The indebtedness as of December 31, 2010 is evidenced by an unsecured promissory note which bears interest at 6% per annum. Despite a small reduction in the balance due from Callisto during the quarter ended June 30, 2011, Synergy is unable to determine when this balance will be repaid and accordingly Synergy has classified the balance due as a long term asset. As of June 30, 2011 and December 31, 2010, the balances due from Callisto Pharmaceuticals, Inc. are comprised of the following amounts:

	June 30, 2011		December 31, 2010
Rent, utilities and property taxes	$	73,936	$	61,813
Insurance and other facilities related overhead	176,645		150,836
Independent accountants and legal fees	487,615		417,298
Financial printer and transfer agent fees	170,535		147,171
Salaries and consulting fees of shared executives	255,165		214,311
Working capital advances, net of repayments	214,577		682,658
Total due from Callisto	$	1,378,473	$	1,674,087