XML 24 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 9 - RELATED PARTY TRANSACTIONS

 

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 had drawn $550,100 from the revolving note.  The CEO also paid, on behalf of the Company, $49,673 of its outstanding payables.   The total liability to the CEO of $599,773 was fully paid as of December 31, 2014.

 

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.  The lease was terminated as of October 31, 2015.

 

On September 30, 2014, a member of our Board of Directors subscribed to 1,600,000 preferred shares at a cost of $1.25 per share. The proceeds from the subscription were received in October 1, 2014. On December 31, 2014, the same director subscribed and paid for an additional 2,800,000 preferred shares on the same terms and conditions as the previous transaction.

 

On January 14, 2015, the Company paid Patrick Carter $2,215,000 to redeem the 2,215 series A preferred shares which he owned, and cancelled them.

 

On February 9, April 6, and April 20, 2015 the Company reimbursed Patrick Carter a total of $135,276 to acquire 442,140 common shares which Carter had purchased on behalf of the Company.  The shares were subsequently returned to the Company and were canceled.

 

On November 12, 2015 the Company COO loaned to the Company, on an open, unsecured loan, $9,000 which was repaid on November 16, 2015.

 

On December 30, 2015 the Company COO loaned to the Company, on an open, unsecured loan, $4,000 which remained unpaid on December 31, 2015.  The loan was subsequently repaid on January 5, 2016.