3. RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

On June 30, 2013, the Company negotiated a settlement of outstanding wages, advances, expenses, etc, in the amount of $3,843,133, to the two officers of the Company. The settlement Notes were for $500,000 and $25,000 to Mr. Reichman and $200,000 and $10,000 to Mrs. Griffin. The balances at December 31, 2013 are $421,044 to Mr. Reichman and $206,670 to Mrs. Griffin. The notes bear interest at 5% are due at December 31, 2015 and June 30, 2014 for the smaller balances and are unsecured. Accrued interest at December 31, 2013 is $ 39,230.

Due to officers as of December 31, 2013 and 2012 totals $678,361 and $3,853,391, respectively. These balances consist of notes payable, net cash advances, bonuses, unpaid wages and unpaid expense reimbursements due to David Reichman and Kathy Griffin. The payables are unsecured, due on demand and do not bear interest. The notes payable bear interest at 5% and are due in 2014 and 2015. During 2013 Mr. Reichman advanced $101,980 to the Company to cover operating expenses, and was repaid $192,060. During 2012 Mr. Reichman advanced $110,427 to the Company and was repaid $138,227. At December 31, 2013 and 2012, the balances due each officer are as follows: Mr. Reichman: $471,691 and $3,304,634, respectively, and Mrs. Griffin: $206,670 and $548,757, respectively.

During 2013 and 2012, a board member advanced $31,000 and $19,000, respectively. These totals consist of several small advances, each covered by separate notes that bear interest at 6% and 8%, are unsecured, and are due beginning in August 2013 through August 2014. The total notes payable to this board member at December 31, 2013 and 2012 amount to $50,000 and $19,000, respectively. As of December 31, 2013, $33,000 in notes are in default, however, the lender has not made demand for payment.