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RELATED PARTY
12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
RELATED PARTY

The related party accounts payable to shareholders are $230,701 and $35,560 as of December 31, 2014 and December 31, 2013, respectively for accrued salary.

 

On July 1, 2014, the Company entered into an agreement with a related party to convert $226,785 advances to a convertible promissory note. The note is due on January 1, 2015 and carries a fixed convertible price of $0.01 and interest rate of 5%. On the same date, the related party assigned $166,000 of the principal to 22 third parties (See note 7). As a result of the fixed conversion price, the Company recognized and expensed a discount of $226,785 as of December 31, 2014. As a result of the assignment, the principal balance as of December 31, 2014 due to related party is $60,785 and accrued interest of $1,524.

 

During 2008, a related party incurred $4,157 of expenses on behalf of the Company. There are no repayment terms or interest. As of December 31, 2014, the Company imputed interest at 15% resulting in an interest expense of $624.

  

During 2010, the Company advanced from a related party $815 for expenses. There are no repayment terms or interest. As of December 31, 2014, the Company imputed interest at 15% resulting in an interest expense of $122.

 

During 2011, Donny Fitzgerald, the Company’s president advanced the Company $2,500. There are no repayment terms or interest. As of December 31, 2014, the Company imputed interest at 15% resulting in an interest expense of $375.

 

During 2013, the Company advanced from a related party $1,445 for expenses. There are no repayment terms or interest. During 2014, the Company repaid back $910 leaving a remaining balance of $535 as of December 31, 2014. The Company imputed interest at 15% resulting in an interest expense of $200.

 

At December 31, 2014, Mr. Harpreet Sangha was owed $24,206 ($214,338 as at December 31, 2013) related to expenses. There are no repayment terms or interest. As of December 31, 2014, the Company imputed interest at 15% resulting in an interest expense of $17,800. On July 1, 2014, $226,785 of the advances was converted into a convertible promissory note (see note 7).