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Note 9. Related Party Transactions
6 Months Ended
Jun. 30, 2017
Notes  
Note 9. Related Party Transactions

Note 9.  Related Party Transactions

 

As of June 30, 2017, the President of the Company is owed deferred salary in the amount of $1,716,996 and the 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% per annum on the foregoing amounts owed. Interest expense under this agreement amounted to $78,140 and $64,751 for the six months ended June 30, 2017 and 2016, respectively. Total interest accrued under this agreement totaled $598,482 and $520,342 as of June 30, 2017 and December 31, 2016, 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, utilities and other expenses. Rent expense associated with this lease amounted to base rent in the amount of $27,204 and associated rental costs of $7,300 for a total of $34,504 for the six months ended June 30, 2017 and base rent in the amount of $27,204 and associated rental costs of $5,953 for a total of $33,157 for the six months ended June 30, 2016. No payments associated with the base rents were made in the first six months of 2017. At June 30, 2017 and December 31, 2016, amounts owing for base rent and associated rental costs totaled $139,256 and $105,734, respectively.

 

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 $356,250 and $311,250 was due and owing to the Company’s current and former directors as of June 30, 2017 and December 31, 2016, respectively. Directors have previously been compensated and may, in the future, be compensated for their services with cash, common stock, or options to purchase common stock of the Company.

 

See Notes 8 and 11 for other related party transactions.