RELATED PARTY TRANSACTIONS AND BALANCES

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 5 - RELATED PARTY TRANSACTIONS AND BALANCES

Transactions

	Nine Months Ended September 30,
	2012		2011
Compensation and related expenses to Chairman (1)	$	222,000	$	222,000
Compensation to Chief Financial Officer (2)		90,000		90,000
Cash advance from Royal HTM Group  (3)		135,000		164,000
Cash advances in the form of direct payment of expenses by Royal HTM Group  (3)		0		37,000
Business development services  (4)		33,000		90,000
	$	480,000	$	603,000

1) Boris Birshtein serves as the Company’s Chairman of the Board of Directors (the “Chairman”) and its Chief Executive Officer. Mr. Birshtein owns 50% of Royal HTM Group, Inc., the Company’s majority shareholder.

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

3) Although it is under no obligation to do so, Royal HTM Group, Inc., a Canadian company owned by Messrs Birshtein and Braverman, from time to time lends funds to the Company (and advances funds on its behalf) to cover the Company’s on-going expenses.

4) Royal HTM Group, Inc. renders certain business development services to the Company. Beginning as of January 1, 2012, the monthly rate for such services is $2,500 (reduced from $10,000 per month). Additionally, Royal HTM Group, Inc. is entitled to a quarterly expense allowance of $5,000 for expenses incurred in connection with its business development services rendered to the Company.

Balances

As of September 30, 2012 payables to related parties consist of the following:

Amount due to Royal HTM Group	$	3,576,000
Accrued compensation due to Chief Financial Officer		450,000
Accrued compensation due to the Chairman		2,012,000
	$	6,038,000

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