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Related Party Transactions and Balances
12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transactions and Balances

NOTE 12 – RELATED PARTY TRANSACTIONS AND BALANCES

 

From June 2014 to December 31, 2015, Mr. Heddle, the Company’s Chief Executive Officer, made several personal loans to the company to provide working capital. As of December 31, 2015, the current aggregate outstanding balance including accrued interest at 4% per annum was $1,593,291. (See Note 7).

 

At December 31, 2015 and 2014, the company’s accounts payable and accrued expenses included a $132,218 and $75,218, respectively, outstanding balance due to Heddle Marine Services, a business controlled by Mr. Richard Heddle, the company’s Chief Executive Officer and member of the Company’s board of directors. The amounts payable arose from payments made in 2014 by Heddle Marine on behalf of the company to a logistics company to transport fuel from the Niagara Falls site to the blending tanks at our facility in Thorold, Ontario, as well as for labor and material provided by Heddle Marine towards upkeep of our Canadian facilities including 2015 cleanup costs incurred in order to terminate the lease with Avondale properties on the discontinued (RRON) Operation.

 

In November 19, 2014, the Companyentered into a Subscription Agreement with Heddle Marine Services, , pursuant to which we issued to Heddle Marine a $1 million principal amount 12% Secured Promissory Note, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share.

 

Plastic2Oil Marine, Inc., one of the Company’s subsidiaries, which is currently not operating, entered into a consulting service contract in 2010 with a company owned by Mr. Heddle, who later (in 2014) became the Company’s Chief Executive Officer. The contract provides the related company with a share of the operating income earned from Plastic2Oil technology installed on marine vessels which are owned by the related company. The contract provides a minimum future payment equal to fifty percent of the operating income generated from the operations of two of the most profitable marine vessel processors and 10% from all other marine vessel processors. At December 31, 2015, there were no currently installed marine vessel processors pursuant to the contract.