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4. Related Party Transactions
3 Months Ended
Mar. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

Due to Officers and Officer Compensation

 

The Company borrows funds from Daniel Thompson, who is a Shareholder and Officer of the Company. The terms of repayment stipulate the loans are due 24 months after the launch of the Legacy Tuition Card (or prior to such date) at an annual interest rate of six percent. As of March 31, 2015, the Company had $86,305 due to Daniel Thompson.

 

In addition, the Company has an employment agreement, renewed May 15, 2014, with Daniel Thompson whereby the Company changed Daniel Thompson’s compensation to $20,000 per month from $25,000. Accordingly, a total salary of $60,000 and $75,000 were accrued and reflected as an expense to Daniel Thompson during the three months ended March 31, 2015 and 2014, respectively. The accrued salaries payable to Daniel Thompson was $322,500 as of March 31, 2015.

 

The Company has an employment agreement with a former President, Ms. Roberton, whereby the Company provides for compensation of $25,000 per month beginning May 15, 2014. A total salary of $187,500 was reflected as an expense during the year ended December 31, 2014. The total balance due to Ms. Roberton for accrued salaries at March 31, 2015 and December 31, 2014 was $187,500 and $0, respectively.

 

The Company had an employment agreement with a former Chief Operating Officer, Mr. Levy, whereby the Company provided for compensation of $15,000 per month. A total salary of $45,000 was accrued and reflected as an expense during the three months ended March 31, 2015. The total balance due to Mr. Levy for accrued salaries at March 31, 2015 was $45,000.

 

The Company had an employment agreement with the Chief Executive Officer, Mr. Cunningham, whereby the Company provided for compensation of $15,000 per month. A total salary of $45,000 was accrued and reflected as an expense during the three months ended March 31, 2015. The total balance due to Mr. Cunningham for accrued salaries at March 31, 2015 was $45,000.

 

Notes Payable – Related Party

 

The Company has entered into several loan agreements with related parties (see above; Note 5, Notes Payable – Related Party; and Note 6, Convertible Notes Payable – Related Party).