Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 4 - RELATED PARTY TRANSACTIONS

Supplier

A family member of an officer/shareholder owns a minority interest in a company in China, which as of 2014, is the sole supplier of ballasts to the Company. Purchases from the related party for the three months ended September 30, 2016 and 2015 totaled approximately $859,000 and $1,823,000, respectively. Purchases from the related party for the nine months ended September 30, 2016 and 2015 totaled approximately $2,364,000 and $4,560,000, respectively. The Company believes purchase prices from the related party approximate what the Company would have to pay from an independent third party vendor. At September 30, 2016 and December 31, 2015, the Company owed the related party $889,946 and $1,171,754, respectively.

Amounts Due to Related Parties

As of September 30, 2016 and December 31, 2015, the Company owed related parties $139,112 and $127,265, respectively. Included in the balances were short-term loans from the two officers/shareholders to the Company totaling $3,297 as of September 30, 2016 and December 31, 2015, respectively. The balances are payable on demand, bear zero interest and are unsecured. The balances also included interest owed on the notes payable to related parties, which totaled to $57,496 and $28,969 at September 30, 2016 and December 31, 2015, respectively. Also included is $78,319 and $94,999 of unpaid compensation, which was owed to the officers/shareholders at September 30, 2016 and December 31, 2015, respectively.