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Stockholder Loans And Advances From Stockholders
6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Note 5 - Stockholder Loans And Advances From Stockholders

Gabriel Capital LP, a major stockholder of the Company, made two loans to the Company in 2014 in the amounts of $40,000 and $45,000, to purchase machinery and equipment. There is no interest on these informal loans. The $40,000 loan is to be repaid on July 1, 2015, or earlier to the extent the Company has cash in excess of $250,000. As of the date hereof, this loan was not repaid and is currently due. The $45,000 loan is to be repaid on October 1, 2015, or earlier to the extent the Company has cash in excess of $250,000. 

 

In May 2015, Gabriel Capital LP loaned the Company an additional $56,500 interest free to be repaid from 50% of the net proceeds of any equity financing obtained by the Company, and, in any event, to be repaid by September 30, 2015.

 

During the six months ended June 30, 2015, a director and his affiliates advanced $73,000 to the Company that bear no interest. The Company expects that a substantial portion of such advances will be converted into A-2 Units (see Note 8).

 

During the six months ended June 30, 2015, stockholders loaned the Company $36,680 for future accounts receivable. These loans will be repaid in the amount of $38,000 upon collection of the accounts receivable.