10. RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

The Company periodically receives funding from its CEO, CFO and directors to fund operating costs of the Company. Jerry Wright, a director, loaned the Company $30,000 during the year ended December 31, 2015, which bears interest at the rate of 6% per annum. The related party note payable had a principal balance of $25,500 as of December 31, 2016 and 2015, and accrued interest payable of $1,216 and $953 as of December 31, 2016 and 2015, respectively. The loan was to have been paid by June 30, 2016, and is currently in default.

PSF Inc., a company controlled by the Company’s CEO, loaned the Company $6,000 during the year ended December 31, 2016, which bears interest at the rate of 4% per annum and matures in June 2017. The related party note payable had a principal balance of $6,000 and accrued interest payable of $15 as of December 31, 2016.

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 $136,500 and $162,000 for compensation for the CEO during the years ended December 31, 2016 and 2015, of which $9,000 and $4,375 were paid, respectively. Accrued compensation to the CEO totaled $445,625 and $318,125 as of December 31, 2016 and 2015, respectively.

The bookkeeper earned $18,000 during the years ended December 31, 2016 and 2015 for services provided to the Company of which $3,000 and $9,000 were paid, respectively. Accrued compensation to the bookkeeper totaled $27,000 and $12,000 as of December 31, 2016 and 2015, respectively.