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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 9 - RELATED PARTY TRANSACTIONS

 

During 2012 the Company issued convertible notes to a member of the board of directors and certain members of his family as more fully disclosed in Note 11.

 

During 2012 the Company paid fees to 808 Investments, LLC, in the amount of $456,294 for the sale of the Company’s common shares and $225,000 financing fees related to the convertible notes.

 

During 2012, the CEO, Patrick S. Carter made non-interest bearing advances to the Company totaling to $595,688. These advances were fully paid during the year.

 

On August 8, 2013, the Company entered into a revolving note agreement with the CEO, Patrick S. Carter, pursuant to which the Company may borrow up to $1,000,000. The revolving note bears annual interest of 10%, matures on August 7, 2014 and is secured by the assets of the Company.  The Company has drawn $140,000 from the revolving note which were fully paid as of December 31, 2013.

 

Commencing August 1, 2013 the Company entered into a fifteen year lease agreement, with Patrick S. Carter, our CEO and his wife Parvaneh Carter, to lease the Company’s office and warehouse facility on a gross lease of $8,000 per month.