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Related-Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related-Party Transactions

NOTE 5 – RELATED-PARTY TRANSACTIONS

 

Transactions involving Officers, Directors, and Stockholders

 

In 2007, we issued a 10% promissory note to a family member of our president in exchange for $300,000. The note was due on demand after May 2008. There were no repayments made during the periods presented. At December 31, 2018 and 2017, the principal amount owing on the note was $151,833 and $151,833, respectively.

 

On March 31, 2008, we issued to this same family member, along with two other Company shareholders, promissory notes totaling $315,000 ($105,000 each). Under the terms of these three $105,000 notes, we received total proceeds of $300,000 and agreed to repay the amount received plus a 5% borrowing fee. The notes were due April 30, 2008, after which they were due on demand, with interest accruing at 12% per annum. We made no payments towards the outstanding notes during the periods presented. The principal balance owing on the notes as of December 31, 2018 and 2017, totaled $72,466 and $72,466, respectively, and are presented in liabilities from discontinued operations.

 

During the year ended December 31, 2018, we received cash advances from related parties of $203,380. Additionally, a related party forgave outstanding payables of $92,000 and related parties paid expenses totaling $241,734 directly to vendors on our behalf. There was $873,721 and $520,608 of short-term advances due to related parties as of December 31, 2018 and 2017, respectively. The advances are due on demand and as such included in current liabilities.

 

We have agreed to issue options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of this employment agreement require us to grant options to purchase 6,000,000 shares of our stock each year, with an exercise price equal to the fair market price of our common stock as of the grant date. During the year ended December 31, 2018, we accrued for 6,000,000 stock options relating to this employee agreement, resulting in 66.0 million and 60.0 million accrued stock options as of December 31, 2018 and 2017, respectively. See Note 6 – Other Accrued Liabilities and Note 13 – Stock Options and Warrants.

 

As of December 31, 2018 and 2017, we owe our president a total of $893,000 and $898,215 in unsecured advances, of which $890,000 and $890,000 were included in liabilities from discontinued operations. Additionally, 66.0 million and 60.0 million accrued stock options, with an aggregate value at time of grant of $169,496 and $168,896, respectively, were owed as of December 31, 2018 and 2017. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans.

 

Additionally, we owed $0 and $333 as of December 31, 2018 and 2017, to our Controller for services rendered.