Annual report pursuant to section 13 and 15(d)

3. Certain Relationships and Related Transactions

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3. Certain Relationships and Related Transactions
12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
3. Certain Relationships and Related Transactions

Accrued Expenses and Accounts Payable - Related Parties

 

As of December 31, 2013 and December 31, 2012, the Company had accounts payable to related parties in the amount of $85,869 and $65,192, respectively. These amounts are unpaid Directors Fees and unpaid Company expenses incurred by Officers and Directors.

 

As of December 31, 2013 and December 31, 2012, the Company accrued the unpaid salaries, unused vacation and the corresponding payroll taxes of Officers in the aggregate of $576,159 and $468,086, respectively. Included in these accruals are the unpaid salaries of the former Chief Executive Officer (CEO) of the Company of $306,250 and $0, respectively pursuant to November 2013 settlement agreement, former President and current member of the Company’s Board of Directors of $195,429 and $255,429, respectively and the former Chief Financial Officer (CFO) of the Company of $0 and $155,000 respectively. The Company agreed to monthly payments ranging from $5,000 up to $29,167 to these Officers until their unpaid salaries are fully settled.

 

Bonus Paid to Officers

 

General and administrative expenses for the year ended December 31, 2013 include a cash bonus in the aggregate of $259,000 including a grant of common stock valued at $109,000. There were no such cash bonuses in 2012 or 2011.

 

Consulting Fees Paid to Related Party

 

During the year ended December 31, 2013 the Company incurred consulting fees of $60,000 to a consulting firm controlled by a member of our Board of Directors. There were no such costs in 2012 or 2011.