Related party transactions

12 Months Ended

Dec. 31, 2011

13.	Related party transactions

The Company has related party expense as described in the following table:

	December 31,
	2011		2010
Office space lease (a)	$	41,000	$	64,238
Administrative expenses (b)		-		5,200
Aircraft use (c)		1,100		5,100
Hybrid debt instrument (d)		3,232		4,311
Line of credit (e)		42,726		-
Convertible senior secured promissory notes (f)		4,507		-
	$	92,565	$	78,849

(a)	Payments related to the lease of office space from an entity owned by the Chairman of the Board and CEO

(b)	Payments related to administrative expenses provided by an entity owned by the Chairman of the Board and CEO

(c)	Payments related to aircraft use from an entity owned by the former Chairman of the Board and current member of the Board of Directors

(d)	Interest of $3,232 and $4,311 for 2011 and 2010, respectively, related to convertible promissory notes issued in October 2010 to the Chairman of the Board and CEO and two other members of the Board of Directors

(e)	Interest of $42,726 related to a revolving secured line of credit with the Chairman of the Board and CEO dated March 31, 2011

(f)	Interest of $4,507 related to the convertible senior secured promissory notes with the Chairman of the Board and CEO during the fourth quarter of 2011

All the above related party expenses were included in general and administrative expenses or interest expense in the accompanying consolidated statements of operations.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 1-4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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+ Details