4. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

6 Months Ended

Jun. 30, 2012

Related Party Transactions Disclosure [Text Block]

4. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

The Company’s three founders, Terry Anderton, Les Anderton, and Joakim Lindblom have a number of transactions that warrant disclosure per ASC 850, “Related Party Disclosures“.

Loans - The Trunity, LLC Note with the Company was beneficially owned by the three founders of the Company. The loan principal was converted into shares of common stock in 2011. Accrued but unpaid interest at June 30, 2012 and December 31, 2011 was approximately $142,000. The interest will be paid in the second half of 2012.

Credit agreements exist with Terry Anderton and Les Anderton that allow the Company to borrow up to $0.9 million, as needed, to fund working capital needs. These agreements carry an interest rate of 10% and will expire in September and December of 2012. There were no outstanding balances related to these agreements at December 31, 2011. At June 30, 2012, Terry Anderton, Les Anderton, Joakim Lindblom and an investor have advanced the Company short-term loans of $273,333, $190,149, $68,783 and $16,784, respectively, which remain outstanding at the end of the period. The loans have no repayment terms but are expected to be repaid in 2012.