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Note 7. Related Party Transactions
3 Months Ended
Mar. 31, 2016
Notes  
Note 7. Related Party Transactions

Note 7.  Related Party Transactions

 

As of March 31, 2016, the President of the Company is owed deferred salary in the amount of $1,341,996. As of March 31, 2016, a Vice President and 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 agreed to pay interest at 9% on the amounts owed the foregoing. Accrued interest under this agreement for the three months ended March 31, 2016 and 2015 amounted to $31,360 and $25,800, 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 calls for monthly base rent in the amount of $4,534 and payment of associated costs of insurance, real estate taxes, expenses and utilities. Rent expense associated with this lease amounted to base rent in the amount of $13,602 and associated rental costs of $3,415 for a total of $17,017 for the three months ended March 31, 2016 and base rent in the amount of $13,602 and associated rental costs of $5,665 for a total of $19,267 for the three months ended March 31, 2015. In the first quarter of 2016, the Company paid none of the base rent due for that quarter and the base rent due, in the amount of $13,602, was accrued. In the first quarter of 2015, the Company paid $18,136 for base rent.

 

Directors of the Company are entitled to a director's fee of $15,000 per year for their services. The Company has been unable to pay directors' fees to date. A total of $243,750 and $221,250 was due and owing to the Company's current and former directors as of March 31, 2016 and December 31, 2015, respectively. 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.