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11. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
11. RELATED PARTY TRANSACTIONS

In 2009, the Company executed a 10% convertible note payable in the amount of $102,236 originally due December 31, 2010 to John Evey for amounts loaned to the Company. Mr. Evey joined the Board of Directors on April 27, 2010. Through a series of extensions, the note due date was extended to December 31, 2015. During the six month period ended June 30, 2015, the Company made principal payments totaling $6,000 on this note. The balance of the note as of June 30, 2015 is $92,616 with accrued interest amounting to $30,659 (See note 5).

 

As partial payment for professional services provided by GreenCore Capital, LLC (“GreenCore’) during the six months ended June 30, 2015, the Company made cash payments amounting to $27,000 and issued 202,571 shares of the Company’s common stock with a per share value between $0.13 and $0.136 (based on an average market value of the stock when earned as defined in the agreement) or $27,000 and expensed the payments at issuance. Jay Potter, our director, is the managing member of GreenCore and the primary individual performing the services (See note 9).

 

During the six month period ended June 30, 2015, the Company released 208,332 shares of common stock with a per share value of $0.15, or $31,250 (based on the market price at the time of the agreement), to two directors for their service as defined in their respective Restricted Stock Grant Agreements. The payments were expensed at issuance (See note 9).

 

In June 2015, Robert Noble, our Chairman, purchased a 70.0066819% stake in the convertible note payable owed to Gemini Master Fund which became due on June 30, 2015. As of June 30, 2015, Mr. Noble’s stake in this note amounts to $600,000 in principal and $95,816 of accrued interest. Further, Mr. Noble has agreed to a daily extension of his portion of the debt until further negotiations of the terms of an extension can be agreed to and finalized (See note 6).

 

The Company entered into a lease agreement with Desmond Wheatley, our CEO, whereas the Company leases a pickup truck that the Company uses in its operations primarily in the delivery of EV ARC™ units. The lease calls for a payment of $1,850 per month plus $0.15 per mileage of usage. These amounts are based on third party market prices for similar vehicle leases. We have paid $6,963 during the six months ended June 30, 2015.