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3. Certain relationships and related transactions
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9 Months Ended |
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Sep. 30, 2012
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| Certain Relationships And Related Transactions | |
| Note 3. Certain relationships and related transactions |
Accounts Payable to related parties
As of September 30, 2012 and December 31, 2011, the Company had accounts payable to related parties in the amount of $43,253 and $63,003, respectively. These amounts are unpaid Directors Fees and expenses incurred by officers and directors.
Accrued expense due to related parties
As of September 30, 2012 and December 31, 2011, the Company accrued the unpaid salaries, unused vacation and the corresponding payroll taxes of its employees in the amount of $767,204 and $812,993, respectively. Included in these accruals are the salaries due to the President and to a former officer of the Company.
The President of the Company has agreed to defer payment of salary for an indefinite period of time. No payment was made during the period ended September 30, 2012 and balance as of September 30, 2012 was $451,020 including expenses of $7,839.
A former officer of the Company has agreed to a monthly payment schedule $10,000 to $15,000 which will end in October 2013 pursuant to a December 2011 Settlement Agreement upon his resignation. During the period ended September 30, 2012, the Company paid $120,000 leaving a balance of $200,000.
Cash Bonus Paid to Chief Executive Officer
General and administrative expenses for the three and nine months ending September 30, 2012, include a cash bonus of $100,000 and $0, respectively paid to the Companys Chief Executive Officer. |