RELATED PARTY TRANSACTIONS AND BALANCES

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 5 - RELATED PARTY TRANSACTIONS AND BALANCES

Transactions

	Nine Months Ended September 30,
	2013		2012
Compensation and related expenses to the Chairman (1)	$	22,000	$	222,000
Compensation to the Chief Financial Officer (2)		22,000		90,000
Cash advance from Royal HTM Group, Inc. (3)		109,000		135,000
Business development services (4)		-		33,000
	$	153,000	$	480,000

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, 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. During the 2012 fiscal year, the monthly fee for such services was $2,500, together with a quarterly expense allowance of $5,000. Effective January 1, 2013 the Company no longer accrues any fees or expenses related to such business development services.

Balances

As of September 30, 2013, payables to related parties consist of the following:

Amount due to Royal HTM Group, Inc.	$	3,736,000
Accrued compensation due to the Chief Financial Officer		503,000
Accrued compensation due to the Chairman		2,109,000
	$	6,348,000

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