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9. RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
9. RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

 

During the periods reflected on this report certain shareholders made cash advances to the Company to help with short-term working capital needs. The net proceeds from stockholders with unstructured payment plans amounted to $125,548 and $21,210 for the period ended September 30, 2014 and 2013, respectively. The total balance due on unstructured loans from shareholders amounted to $404,886 and $251,054 at September 30, 2014 and December 31, 2013, respectively. Loans from stockholders made with repayment terms are described in Note 4 above.

 

Also, please see Note 12 regarding a contingent liability payable to the Company’s CEO in the case of an occurrence of certain events relating to a significant change of control.

 

During the period ended September 30, 2014 a Board member accrued fees for professional services to the Company in the amount of $95,000.

 

During the year ended December 31, 2013 a Board member provided professional services to the Company for which he was paid $25,000 in cash and awarded 7,113,333 shares of common stock with a value of $173,500. Of the total shares 1,680,000 were issued subsequent to December 31, 2013 and are reflected on the financial statements as issuable common stock.