6. Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

6.Related Party Transactions

a) As at March 31, 2015, the Company was owed $57,500 (December 31, 2014 - 87,500) from a significant shareholder which is non-interest bearing, unsecured, and due on demand.

b) As at March 31, 2015, the Company owed $23,797 (December 31, 2014 - $36,574) to the President of the Company, which is non-interest bearing, unsecured, and due on demand.

c) As at March 31, 2015, the Company owed $21,489 (December 31, 2014 - $49,150) to the Chief Financial Officer of the Company, which is non-interest bearing, unsecured, and due on demand.

d) As at March 31, 2015, the Company recorded a liability for shares issuable of $462,019 (December 31, 2014 - $513,101) relating to 154,006,196 common shares to be issued to a significant shareholder pursuant to the acquisition agreement for the intangible assets. During the period ended March 31, 2015, the Company recorded $51,082 as a gain in the fair value of the shares issuable to the significant shareholder.

e) As at March 31, 2015, the Company owed $75,000 (December 31, 2014 - $75,000) to a significant shareholder for a loan payable. The loan is unsecured, non-interest bearing, and due on July 25, 2017. Refer to Note 7(b).

f) During the period ended March 31, 2015, the Company generated revenues of $285,000 (March 31, 2014 – $nil) from a significant shareholder.

g) During the three months ended March 31, 2015, the Company incurred payroll expense of $55,410 (2014 - $10,765) to management and officers of the Company.

h) During the period ended March 31, 2015, the Company incurred engineering expense of $100,000 (March 31, 2014 - $nil) to company owned by the mother of the President of the Company, which was included in cost of goods sold. As at March 31, 2015, the Company owed $5,000 (December 31, 2014 - $7,490) to the company owned by the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. The amount owing has been recorded as accounts payable – related party.