9. RELATED PARTY TRANSACTION

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTION

The Company periodically receives funding from officers and directors to fund operations. Jerry Wright, a director, advanced to the Company $30,000 during the year ended December 31, 2015. The Company repaid $4,500 of the advance, resulting in a related party note payable of $25,500 as of September 30, 2016 and December 31, 2015 reported in the Company’s Condensed Balance Sheets. The related party note payable bears interest at the rate of 6% per annum, and had accrued interest payable of $830 and $953 as of September 30, 2016 and December 31, 2015, respectively. The maturity date of the note was extended to June 30, 2016, and the note is currently in default.

The Company’s CEO and the bookkeeper who is the wife of the CEO provide consulting services to the Company through companies controlled by the individuals. The Company accrued $40,500 for compensation for the CEO during each of the three-month periods ended September 30, 2016 and 2015 and $121,500 during each of the nine-month periods ended September 30, 2016 and 2015. Accrued compensation to the CEO totaled $430,625 and $318,125 as of September 30, 2016 and December 31, 2015, respectively.

For services provided to the Company, the bookkeeper earned $4,500 during each of the three-month periods ended September 30, 2016 and 2015 and $13,500 during each of the nine-month periods ended September 30, 2016 and 2015. Accrued compensation to the bookkeeper totaled $13,500 and $12,000 as of September 30, 2016 and December 31, 2015, respectively.