Note 6 - Related party transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Note 6 - 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. Commencing January 1, 2016, PRM started to serve as the Manager of ARP at no cost. During the six months ended June 30, 2016, the Company recorded management fees of $nil (2015 - $60,000). As at June 30, 2016, ARP is indebted to the Manager of ARP for $192,914 (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. The amount due is unsecured, non-interest bearing and due on demand.

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 six months ended June 30, 2016, the Company recorded management fees of $18,276 (2015 - $nil). 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 six months ended June 30, 2016, the Company recorded stock-based compensation of $1,041,058 (2015 - $nil), which is included in general and administrative expense.

d)    As of June 30, 2016, the Company is indebted to the CFO of the Company, and a company owned by the CFO of the Company, for a net $68,551 (December 31, 2015 - $3,050), which represents advances of $65,551 made to the Company by the CFO and $3,000 of management fees owed to the CFO. The amount due is unsecured, non-interest bearing and due on demand. 

e)    As of June 30, 2016, the Company is indebted to the Chief Executive Officer of the Company (the “CEO”) for a net of $11,158 (December 31, 2015 - $14,164), which represents $16,158 of management fees owed to the CEO and a $5,000 advance provided to the CEO for travel and general and administrative expenses. The amount due is unsecured, non-interest bearing and due on demand.

f)    As of June 30, 2016, the Company is owed $7,729 (December 31, 2015 - $nil) from the limited partner of AHIT Valfre, LLP, which represents refunds received on behalf of the Company from mortgage companies. On July 5, 2016, the Company received the total amount owed. In addition, the Company owed $136 to the limited partner of AHIT Valfre, LLP for repair expenses paid on behalf of the Company.

g) On March 18, 2016, the Company sold its interest in one of the Company’s properties to PRM for $211,200 and recognized a gain of $4,981 on sale of asset.