Related Parties

12 Months Ended

Dec. 31, 2011

Related Parties

Related Parties

11. Related Parties

As of December 31, 2011, Synergy’s principal shareholder, Callisto, owns 41.10% of its outstanding shares. Synergy occupies corporate office space in New York City under a month to month sharing arrangement with Callisto, its principal shareholder. Rent is allocated from Callisto monthly based on the square footage of office space occupied by Synergy.

As of December 31, 2011 Synergy had advanced Callisto $1,541,456 which is Callisto’s share of Synergy payments for common operating costs since July 2008. This indebtedness is evidenced by an unsecured promissory note which bears interest at 6% per annum. Interest income earned on this note totaled approximated $84,000 and $89,000 during the twelve months ended December 31, 2011 and 2010, respectively.  Due to the uncertainty surrounding Callisto’s ability to raise capital 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 December 31, 2011 and December 31, 2010, the balances due from Callisto Pharmaceuticals, Inc. are comprised of the following amounts:

	December 31, 2011		December 31, 2010
Rent, utilities and property taxes	$	90,166	$	61,813
Insurance and other facilities related overhead	249,635		150,836
Independent accountants and legal	510,331		417,298
Financial printer and transfer agent fees	217,476		147,171
Salaries and consulting fees of shared executives	289,270		214,311
Working capital advances	184,578		682,658
Total due from Callisto	$	1,541,456	$	1,674,087