Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions

Related Party Transactions

NOTE 3 - RELATED PARTY TRANSACTIONS

In prior years, Joseph Fiore, CEO of the Company, and Berkshire Capital, which is controlled by Mr. Fiore, paid expenses and made advances to the Company. All expenses paid on behalf of the company have been recorded in the consolidated statements of operations for the period incurred. The advances bear interest at 6% per annum. At September 30, 2014 and December 31, 2013 $1,345,077 and $1,286,035, respectively of principle and accrued interest was due on this loan.

On September 14, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $125,000, bearing interest at 6% per annum. At September 30, 2014 and December 31, 2013, $193,167 and $184,688, respectively of principle and accrued interest was due on this loan.

On July 17, 2007, the Company acquired 3,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $465,000, bearing interest at 6% per annum. On January 8, 2008, $375,156 was paid on this note. At September 30, 2014 and December 31, 2013, $154,350 and $147,575, respectively of principle and accrued interest was due on this loan.

On August 22, 2007, the Company acquired 2,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $160,000, bearing interest at 6% per annum. At September 30, 2014 and December 31, 2013, $244,519 and $233,786, respectively of principle and accrued interest was due on this loan.

On September 20, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $55,000, bearing interest at 6% per annum. On July 30, 2013, $49,411 was paid on this note. At September 30, 2014 and December 31, 2013, $31,969 and $30,565, respectively of principle and accrued interest was due on this loan.

On January 5, 2012, the Company acquired 3,500,000 shares of Plandai, Inc, from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $1,575,000. The note has a five year term with principle and interest due January 5, 2017. The interest rate is 6% per annum. At September 30, 2014 and December 31, 2013, $1,833,775 and $1,762,900, respectively of principle and accrued interest was due on this loan.

On February 1, 2012, the Company acquired 3,500,000 shares of Inscor, Inc. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $3,675,000. The note has a five year term with principle and interest due February 1, 2017. The interest rate is 6% per annum. At September 30, 2014 and December 31, 2013, $4,262,496 and $4,097,122, respectively of principle and accrued interest was due on this loan.

On May 14, 2013, the Company acquired 8,000,000 shares of Nuvilex, Inc. from Berkshire Capital Management in exchange for an unsecured demand note in the amount of $1,420,000. The note has a five year term with principle and interest due May 14, 2018. The interest rate is 6% per annum. At September 30, 2014 and December 31, 2013, $1,537,471 and $1,473,570, respectively of principle and accrued interest was due on this loan.

On May 21, 2013, the Company acquired 8,230,637 shares of Nuvilex, Inc. from Joseph Fiore in exchange for an unsecured demand note in the amount of $1,185,218. The note has a five year term with principle and interest due May 21, 2018. The interest rate is 6% per annum. At September 30, 2014 and December 31, 2013, $1,282,096 and $1,228,762, respectively, of principle and accrued interest was due on this loan.

Interest expense of $439,918 and $535,674 was added to the principal during the nine months ended September 30, 2014 and the year ended December 31, 2013, respectively.

A summary of the above related party transactions is presented below.

Related Party	Date of loan		September 30, 2014		December 31, 2013
Joseph Fiore		21-May-13	$	1,282,096	$	1,228,762
Berkshire Capital Management		14-May-13		1,537,471		1,473,570
Berkshire Capital Management		1-Feb-12		4,262,496		4,097,122
Berkshire Capital Management		5-Jan-12		1,833,775		1,762,900
Joseph Fiore		2010 & 2011		1,345,077		1,286,035
Berkshire Capital Management		14-Sep-07		193,167		184,688
Berkshire Capital Management		17-Jul-07		154,350		147,575
Berkshire Capital Management		22-Aug-07		244,519		233,786
Berkshire Capital Management		20-Sep-07		31,969		30,565
				10,884,920		10,445,003
Less: Current Portion				1,969,082		1,882,648
Long Term Portion			$	8,915,838	$	8,562,355

During the year ended December 31, 2013, Joseph Fiore forgave $301,937 of debt originally loaned to two of the Company’s subsidiaries that are no longer operating. The amount was written off to additional paid in capital.