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4. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

The Company is indebted to the officers of the Company for unpaid wages and bonuses from previous years that were converted into Notes. The balances at June 30, 2015 and December 31, 2014 are $421,044 to Mr. Reichman and $206,670 to Mrs. Griffin, respectively. The notes bear interest at 5% are due at January 15, 2016 and are unsecured.

 

Due to officers as of June 30, 2015 and  December 31, 2014 totals $138,702 and $128,767, respectively. These balances consist of net cash advances, and unpaid expense reimbursements due to David Reichman. The payables and cash advances are unsecured, due on demand and do not bear interest. During the first six months of 2015 Mr. Reichman advanced $52,635 to the Company to cover operating expenses, and was repaid $42,700. During 2014 Mr. Reichman advanced $127,620, to the Company and was repaid $49,460. At June 30, 2015 and December 31, 2014, the balances due Mr. Reichman are $138,702 and $128,767, respectively.

 

During the first six months of 2015 and the year ended December 31, 2014, a board member advanced $22,800 and $31,500, respectively. These totals consist of several small advances, each covered by separate notes that bear interest at 6%, are unsecured, and are due beginning in January 2016 through June 2016. The total notes payable to this board member at June 30, 2015 and December 31, 2014 amount to $104,300 and $81,500, respectively.