Note 7. Related Party Transactions

6 Months Ended

Jun. 30, 2015

Notes

Note 7. Related Party Transactions

Note 7.  Related Party Transactions

As of June 30, 2015, the President of the Company, a current Director of the Company, is owed deferred salary in the amount of $1,116,996 and the Vice President, the current Chairman of the Board of Directors of the Company, is owed deferred salary in the amount of $121,140. The Board of directors had previously agreed to pay interest at 9% on the amounts owed. Accrued interest under this agreement for the six months ended June 30, 2015 and 2014 amounted to $53,863 and $50,247, respectively.

Effective September 1, 2011, the Company entered into a month-to-month lease with the President and then-Chairman of the Board of Directors of the Company, for office space in a furnished and fully equipped townhouse office building owned by the President in Alexandria, Virginia. The lease required base rent in the amount of $4,534 per month and payment of associated costs of insurance, real estate taxes, expenses and utilities. Rent expense associated with this lease amounted to $34,287 and $37,050 for the six months ended June 30, 2015 and 2014, respectively. The President received direct cash payments totaling $27,207 for current rents in the first six months of 2015. The President received direct cash payments of $100,000 of the $168,665 total for accumulated rents for the period from September 1, 2011 through March 31, 2014 and an additional $13,602 for base rents due April 1, 2014 through June 30, 2014.

Directors of the Company are entitled to a Director fee of $15,000 per year for their services. The Company has been unable to pay directors' fees to date. As of June 30, 2015 and 2014 a total of $168,750 and $93,750, respectively, was due and owing to the Company’s directors. Directors have previously been compensated and may, in the future, be compensated for their services with common stock or options to purchase common stock of the Company.