RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 6 - RELATED PARTY TRANSACTIONS AND BALANCES

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

Transactions

	2013		2012
Compensation and related expenses of the Company’s Chairman of the Board and Chief Executive Officer (1)	$	30,000	$	298,000
Compensation of the Company’s Chief Financial Officer (2)		30,000		120,000
Cash advances from Royal HTM Group, Inc. (3)		151,000		174,000
Business development services provided by Royal HTM Group. Inc. (4)		-		30,000
Royal HTM Group, Inc. expense allowance (4)		-		20,000
	$	211,000	$	642,000

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, Inc. 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, Inc., our majority shareholder.

3) Royal HTM Group, Inc., 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) Royal HTM Group, Inc. renders certain business development services to the Company. Beginning as of January 1, 2012, the monthly rate for such services was $2,500 and it was entitled to a quarterly expense allowance of $5,000 for expenses incurred in connection with its business development services rendered to the Company. As of January 1, 2013, the expenses for all of such business development services were terminated.

Balances

Payables to related parties consist of the following: 

	DECEMBER 31,
	2013		2012
Amount due to Royal HTM Group, Inc.	$	3,778,000	$	3,627,000
Accrued compensation due to the Company’s Chief Financial Officer		510,000		480,000
Accrued compensation due to the Company’s Chairman of the Board		2,117,000		2,087,000
	$	6,405,000	$	6,194,000

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