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Related Party Transactions
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions

6.       Related party transactions

 

a)       ARP has been advised and managed by Performance Realty Management, LLC (“PRM”), an Arizona limited liability company (the “Manager”). At the formation of ARP, ARP agreed to pay the Manager of ARP quarterly management fees equal to the greater of: (a) $120,000 on an annual basis, or (b) 1% of the total assets of ARP in consideration for the management services to be rendered to or on behalf of ARP by the Manager. On December 21, 2015, ARP amended its operating agreement with PRM and both parties agreed that the 1,000,000 shares previously issued to PRM represent the sole compensation due to PRM for serving as manager of ARP. As a result of the amendment, effective January 1, 2016, PRM started to serve as the Manager of ARP at no cost. During the three months ended March 31, 2016, the Company recorded management fees of $nil (2015 - $60,000). As at March 31, 2016, ARP is indebted to the Manager of ARP for $9,193 (December 31, 2015 – ARP is owed $2,455 from the Manager of ARP), which represents advances provided by the Manager of ARP for daily operations.

 

b)       On May 15, 2015, the Company entered into an Advisory Board Consulting and Compensation Agreement with a director of the Company pursuant to which the Company agreed to issue 1,000,000 shares of common stock to the director. In addition, the Company agreed to pay the director an annual fee equal to $120,000 or 1% of the Company’s assets as reported on its year-end balance sheet, whichever is greater. The Company will also issue an aggregate of 3,000,000 shares of common stock of the Company on the first, second and third anniversary. During the three months ended March 31, 2016, the Company recorded management fees of $18,276 (2015 - $nil). As at March 31, 2016, the Company is indebted to the director of the Company for $5,050 (December 31, 2015 - $3,050) which represents general and administrative expenses paid on behalf of the Company. The 1,000,000 shares of AHIT were issued on July 6, 2015. On February 25, 2016, the Company amended the Advisory Board Consulting and Compensation Agreement and the director agreed to serve on the Board of Directors at no cost.

 

c)       On February 25, 2016, the Company entered into an employment agreement with the CFO of the Company for a period of three years. The Company agreed to pay the CFO an annual salary equal to $120,000 or 1% of the Company’s assets as reported on its year-end balance sheet, whichever is greater. The Company will also issue an aggregate of 3,000,000 shares of common stock of the Company on the first, second and third anniversary. During the three months ended March 31, 2016, the Company recorded stock-based compensation of $291,058 (2015 - $nil) which is included in general and administrative expense.

 

d)       On March 18, 2016, the Company sold its interest in one of the Company’s properties to PRM for $211,201 and recognized a gain of $4,981 on sale of asset.