Note K - Related Party Transactions

3 Months Ended

Mar. 31, 2015

Notes

Note K - Related Party Transactions

NOTE K – Related Party Transactions

The Company has borrowed funds from a former board member, two (2) current members of the Board of Directors and two (2) related parties in the amount of $1,101,792 and $1,100,611, at March 31, 2015 and December 31, 2014, respectively. The related party notes total to $5,600 at March 31, 2015 and December 31, 2014.  Two notes from the former Board of Directors total to $1,045,000 at March 31, 2015 and December 31, 2014, respectively, and are unsecured.  The third note in the amount of $50,000 at March 31, 2015 and December 31, 2014, respectively is secured by a second lien on the Company’s assets.  The notes to the former member of the Board of Directors are in default and the Company has included approximately $1,169,926 of accrued interest in accrued expenses at March 31, 2015. Amounts due to current board members total $1,181 and $-0- at March 31, 2015 and December 31, 2014, respectively.