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RELATED PARTY TRANSACTIONS
12 Months Ended
Aug. 31, 2013
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 9 - RELATED PARTY TRANSACTIONS

 

The Company's current officers and shareholders have advanced funds to the Company for travel related and working capital purposes.  No formal repayment terms or arrangements existed. There were $345,503 and $315,240 advances due at May 31, 2013 and August 31, 2012, respectively.

  

As described in Note 6 above, from November 9, 2010 (date of inception) through August 31, 2011, the Company issued two notes in the aggregate amount of $265,474 and during the year ended August 31, 2012, the Company issued six notes in the aggregate of $138,026 to the non-controlling interest shareholders of Eco Ventures - Florida.  The notes bear an 8% per annum interest rate, unsecured and are due on demand. The Company charged interest expense of $10,567 during the year ended August 31, 2013, respectively.

 

On September 10, 2012, the Board of Directors (the "Board") of Eco Ventures Group, Inc. (the "Company") accepted the resignation of Paul Smith as President.  In accordance with agreement, Mr. Smith's shall receive all stock earned prior to resignation totaling 6,417 shares. Smith shall receive an additional 20,000 shares of stock valued at $165,000 as compensation for remaining on the "Advisory Board" of Eco Ventures. Also, Smith waived his right to any back salary or cash compensation for services rendered. During the year ended August 31, 2013, the Company credited to additional paid-in capital as contributed services of $180,297 resulted from Smith's waiving of his right to any back salary or cash compensation for services.

 

Also, during the year ended August 31, 2013, Randall Lanham, the Chief Executive Officer of the Company waived rights towards any back salary or cash compensation and accordingly, the Company credited to additional paid-in capital as contributed services of $342,799.

 

During the year ended August 31, 2013, the Company charged to operations as stock based compensation of $37,500 valued at $4.50 per share for 8,333 shares vested upon completion of 60 days review period per employment agreement with Mark Cox, President and Chief Financial Officer of the Company. As of the date of filing of this report, the shares are not issued.

 

Also, upon successful completion of the Mark Cox's one hundred and twenty (120) day review, the Company shall also award an additional 3,333 shares of its "restricted stock" for each month that Employee remains in the employ of the Company, up to a maximum of twenty-four (24) months. Accordingly, the Company charged to operations as stock based compensation $25,862 valued at average monthly closing price for 20,000 shares during the year ended August 31, 2013.. As of the date of filing of this report, the shares are not issued.

 

During the year ended August 31, 2013, the Company paid and accrued $35,000 to the Chief Executive Officer ("CEO") of the Company as per Financial and Marketing Consulting Services agreement and $20,000 as consulting expenses to the CEO of the Company.