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4. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

Due to officers as of June 30, 2014 and December 31, 2013 totals $661,334 and $627,714, 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 the 1st six months of 2014 Mr. Reichman advanced $67,779 to the Company to cover operating expenses, and was repaid $34,159. During 2013 Mr. Reichman advanced $6,968 to the Company and was repaid $66,285. At June 30, 2014 and December 31, 2013, the balances due each officer are as follows: Mr. Reichman: $505,270 and $471,691, respectively, and Mrs. Griffin: $206,670 and $206,670, respectively.

 

During the first six months of 2014 and the year ended December 31, 2013, a board member advanced $22,000 and $17,000, 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 January 31, 2016. The total notes payable to this board member at June 30, 2014 and December 31, 2013 amount to $72,000 and $50,000, respectively. As of June 30, 2014, $39,000 in notes are in default, however, the lender has not made demand for payment.