Related Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

11. Related Party Transactions

On March 26, 2009, the Company entered into a $50,000 revolving credit promissory note (the “Revolver”) with Vector Group Ltd. (“Vector”), the former controlling stockholder of the Company. On January 26, 2011, the Company and Vector entered into an amendment to the Revolver increasing the amount that the Company may borrow from $50,000 to $100,000. The loan bears interest at 11% per annum and was due on December 31, 2013. During January 2014, the term of the Revolver was extended from December 31, 2013 to June 30, 2015. Prior to the Bankruptcy Proceeding the Revolver was in default but the Company obtained waivers from the Convertible Debenture holders waiving their respective rights and remedies pursuant to certain default provisions contained therein. As of March 31, 2016 and December 31, 2015, the balance due to Vector amounted to $73,500. As of March 31, 2016 and December 31, 2015, accrued interest related to the Revolver amounted to $43,301, and is included in accrued interest, related party on the accompanying condensed consolidated balance sheets. Due to the Company filing a voluntary petition for relief under Chapter 11 of Title 11 of the Bankruptcy Court, interest stopped accruing on October 15, 2015. Additional contractual interest through March 31, 2016 would have resulted in $3,773 of additional interest. Subsequent to March 31, 2016, in connection with the Plan, the Revolver was treated as an unsecured claim and paid in accordance with the Plan as disclosed in Note 12. Interest expense for other related party notes payable amounted to $2,021 for the three months ended March 31, 2015. 

ConGlobal Industries, Inc. is a minority stockholder of the Company and provides containers and labor on domestic projects.  The Company recognized Cost of Goods Sold of $103,361 and $206,449, for services ConGlobal Industries, Inc. rendered during the three months ended March 31, 2016 and 2015 respectively. As of March 31, 2016 and December 31, 2015, $317,468, of such expenses are included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

The Lawrence Group is a minority stockholder of the Company and is a building design, development and project delivery firm. As of March 31, 2016 and December 31, 2015, $32,389 of expenses were included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

An affiliated accounting firm of the Company’s former Chief Financial Officer provided accounting and consulting services to the Company. The Company recognized General and Administrative expenses in the amount of $32,000 for the three months ended March 31, 2015.