RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 7 - RELATED PARTY TRANSACTIONS AND BALANCES

In May 2008 Royal HTM Group, Inc. (“Royal HTM Group”), a company owned and controlled by the Company’s two directors, cancelled $400,000 of the Company’s indebtedness to it in exchange for a call right on 21,000,000 shares of the Company’s common stock. In March 2010 Royal HTM Group exercised such call right and the Company issued to it 21,000,000 shares of its common stock.

Additionally, the following schedule sets forth various obligations of the Company to related parties.

Transactions

	2011		2010
Compensation and related expenses of the Company’s Chairman of the Board and Chief Executive Officer (1)	$	291,000	$	298,000
Compensation of the Company’s Chief Financial Officer (2)		120,000		120,000
Cash advances from Royal HTM Group  (3)		209,000		219,000
Cash advances in the form of direct payment of expenses by Royal HTM Group  (3)		36,000		200,000
Business development services provided by Royal HTM Group  (3)		120,000		120,000
Royal HTM Group expense allowance (4)		15,000		-
	$	791,000	$	957,000

1) Boris Birshtein serves as the Company’s Chairman of the Board of Directors and its Chief Executive Officer on a month-to-month basis. Mr. Birshtein owns 50% of Royal HTM Group, our majority shareholder.

2) Jack Braverman serves as a member of the Company’s Board of Directors and as the Company’s Chief Financial Officer on a month-to-month basis. Mr. Braverman owns 50% of Royal HTM Group, our majority shareholder.

3) Royal HTM Group, a Canadian company owned and controlled by the Company’s two members of its Board of Directors, renders certain business development services to the Company. Royal HTM Group has also advanced money to the Company to fund its expenses, and is the Company’s majority shareholder.

4) Effective April 1, 2011 the Company agreed to a quarterly expense allowance of $5,000 for Royal HTM Group for expenses incurred in connection with its business development services rendered to the Company.

Balances

Payables to related parties consist of the following:

	DECEMBER 31,
	2011		2010
Amount due to Royal HTM Group	$	3,403,000	$	3,023,000
Accrued compensation due to the Company’s Chief Financial Officer		360,000		240,000
Accrued compensation due to the Company’s Chairman of the Board		1,790,000		1,499,000
	$	5,553,000	$	4,762,000

These amounts are non-interest bearing and due on demand.