Note 13 - Related Parties

12 Months Ended

Dec. 31, 2012

Notes

Note 13 - Related Parties

Note 13 – 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 is beneficially owned by the three founders of the Company. The loan balance at December 31, 2011 was approximately $142,000, consisting entirely of accrued but unpaid interest. Terms of the loan were disclosed in Note 6.

Stock Options - In 2011, Mr. Lindblom was granted additional options to purchase an additional 333,333 and 60,000 shares at strike prices of $0.30 and $0.25, respectively.  All share amounts have been adjusted for the 1 for 3 reverse stock split that occurred in 2011.

In 2012, Mr. Lindblom was granted additional options to purchase additional 250,000 and 800,000 shares both at a strike price of $0.35. 

Corporate Rental - The company pays monthly rent to Mr. Anderton for his guest house used by corporate employees who work for extended periods of time at the corporate offices located in New Hampshire but reside elsewhere.

Credit Agreements – The Company has credit agreements 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 however these agreements have been amended with board consent indefinitely.  At December 31, 2011, Terry Anderton, Les Anderton, and Joakim Lindblom have advanced the Company loans of $22,041, $25,000 and $22,000, respectively. During 2012, Terry Anderton, Les Anderton, and Joakim Lindblom have advanced the Company 10% interest loans of $10,066, $28,401 and $15,510, respectively, which all remain outstanding at the end of the period.

Founder Stock Transactions - Upon forming the Company in 2009, 3,333,333 shares were issued to both Terry Anderton and Les Anderton for a total of 6,666,667 shares (as adjusted for a 1 for 3 reverse stock split in 2011). At December 31, 2012: Terry Anderton directly owned and controlled 4,550,412 shares; Les Anderton directly and indirectly, with his wife, controlled 4,907,683 shares; and Joakim Lindblom directly owned and controlled 467,000 shares.

In 2011, various notes with the founders were converted to shares of common stock in the Company. The following shares (after the 1 for 3 reverse split of its common shares) were issued to the founders upon conversion of the Trunity, LLC note payable and notes payable to the founders.

Shares Issued Upon Conversion
	Trunity, LLC Note	Notes Payable to Founders
Terry Anderton	3,200,000	856,000
Les Anderton	3,200,000	3,116,000
Joakim Lindblom	800,000	0
Total	7,200,000	3,972,000

In 2012, various notes with the founders were converted to debentures with the Company.

	Conversion  to Debentures
		Notes Payable to Founders
Terry Anderton		$261,932
Les Anderton		222,170
Joakim Linblom		81,270
Total		$565,372