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10. RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2017
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, 2017 and 2016, and accrued interest payable of $2,746 and $1,216 as of December 31, 2017 and 2016, 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 $1,000 during the year ended December 31, 2017 and $6,000 during the year ended December 31, 2016, which bear interest at the rate of 4% per annum and mature in June 2017. The related party notes payable were repaid in full during the year ended December 31, 2017.

 

A shareholder loaned the Company $12,500 on July 5, 2017, which bears interest at the rate of 5% per annum and matures on January 5, 2018. At December 31, 2017, the note had a principal balance of $12,500 and accrued interest payable of $306.

 

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 $60,000 and $136,500 for compensation for the CEO during the years ended December 31, 2017 and 2016, of which $2,500 and $9,000 were paid, respectively. Accrued compensation to the CEO totaled $503,125 and $445,625 as of December 31, 2017 and 2016, respectively.

 

The bookkeeper earned $12,000 and $18,000 during the years ended December 31, 2017 and 2016, respectively, for services provided to the Company of which $5,500 and $3,000 were paid, respectively. Accrued compensation to the bookkeeper totaled $36,000 and $27,000 as of December 31, 2017 and 2016, respectively.