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Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

4. RELATED PARTY TRANSACTIONS

 

In order to preserve cash for other working capital needs, various officers, members of management, employees and Board Members agreed to accrue portions of their wages and sometimes various out-of pocket expenses since 2011. As of December 31, 2018, and 2017, the Company owed $198,135 and $0, respectively, for such accrued wages and other expenses owed for other services which are included in the accrued expenses – related parties on the accompanying balance sheet.

 

On December 31, 2017, management elected to transfer the existing accrued salaries into long-term convertible promissory notes. As of December 31, 2018, and 2017, these notes total $884,546 and $670,047, respectively. The notes bear a 10% annual interest rate. Management shall have the right, but not the obligation to convert up to 50% of the amount advanced and accrued interest into shares, warrants or options of common or preferred stock of the Company at $0.01 per share (see Note 8). Accrued interest on the notes were $134,039 and $45,668 as of December 31, 2018 and 2017 and is included in the accrued expenses – related parties on the accompanying balance sheet.