XML 36 R13.htm IDEA: XBRL DOCUMENT

7. RELATED PARTY TRANSACTIONS	6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	The Company accrued $81,000 for compensation for the CEO during the six months ended June 30, 2015 and 2014 of which $0 was paid. The bookkeeper, who is the wife of the CEO, earned $9,000 during the six months ended June 30, 2015 for services provided to the Company of which $0 was paid. The bookkeeper, who is the wife of the CEO, earned $9,000 during the six months ended June 30, 2014 for services provided to the Company. $3,000 of these amounts were paid during the six months ended June 30, 2014. On June 1, 2015, an outside director of the Company loaned the Company $30,000. The loan has an interest rate of 6% and has a maturity date of December 31, 2015. The Company is required to make monthly principal and interest payments beginning in July 2015. The Company gave the director 500,000 options to purchase the Company’s common stock at $0.05 per share in connection with the loan. The options expire on December 31, 2015. The fair value of the options of $13,170 was recorded as a debt discount and is being amortized to interest expense over the life of the loan. As of June 30, 2015 and 2014, the unamortized discount associated with the loan was $11,721 and $0, respectively.

7. RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2015

The Company accrued $81,000 for compensation for the CEO during the six months ended June 30, 2015 and 2014 of which $0 was paid.

The bookkeeper, who is the wife of the CEO, earned $9,000 during the six months ended June 30, 2015 for services provided to the Company of which $0 was paid. The bookkeeper, who is the wife of the CEO, earned $9,000 during the six months ended June 30, 2014 for services provided to the Company. $3,000 of these amounts were paid during the six months ended June 30, 2014.

On June 1, 2015, an outside director of the Company loaned the Company $30,000. The loan has an interest rate of 6% and has a maturity date of December 31, 2015. The Company is required to make monthly principal and interest payments beginning in July 2015. The Company gave the director 500,000 options to purchase the Company’s common stock at $0.05 per share in connection with the loan. The options expire on December 31, 2015. The fair value of the options of $13,170 was recorded as a debt discount and is being amortized to interest expense over the life of the loan. As of June 30, 2015 and 2014, the unamortized discount associated with the loan was $11,721 and $0, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details