Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 5: RELATED PARTY TRANSACTIONS

Preferred Shares Issued to Officers

The Company received $35,000 from the CEO during the nine months ended September 30, 2016 in exchange for 8% Convertible Promissory Notes that were converted to 35,000 shares of Series A Preferred stock during the period ended September 30, 2016. Additionally, the Company issued a total of 2,800 shares of Series A Preferred stock as loan fees.

The Company issued 10,000 Series A Preferred shares to the CFO as a bonus during the nine months ended September 30, 2016.

Rent Expenses

The Company rents office space from a significant shareholder and director of the Company on a month to month basis with a monthly payment of $1,500.

During the nine months ended September 30, 2016 the Company reached a Settlement Agreement regarding a dispute related to a previous rental agreement where,starting after July 31, 2012, the Company was renting production space for $11,904 per month on a month to month basis. This settlement resulted in a payment of $438,830 for rent, interest, and costs. The Company allocated $40,000 of this settlement towards rent expense for previous years.

Rental expense for the three months and nine months ended September 30, 2016 and 2015 consisted of the following and is recorded in general and administrative expense:

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Office and warehouse space	$	-	$	-	$	40,000	$	-
Corporate office		4,500		4,500		13,500		13,500
Total Rental Expense	$	4,500		4,500	$	53,500	$	13,500