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Prepaid Expenses, Related Party, Note
3 Months Ended
Mar. 31, 2014
Notes  
Prepaid Expenses, Related Party, Note

NOTE 4 - PREPAID EXPENSES, RELATED PARTY

 

As of March 31, 2014 and December 31, 2013 there were $431,573 and $76,032 of prepaid expenses in the company.  $403,662 of the prepaid expenses as of March 31, 2014 relate to warrants and shares issued to consultants which will be expensed over the respective term of the contract and warrant agreement.  See Note 8 for details on the shares and warrants issued.

 

As of March 31, 2014, there were $926,030 of related party prepaid expenses.  The prepaid expenses are made up of prepaid insurance which is being expensed through November 30, 2014 for insurance coverage paid for in 2013, which the policy period covers the company through November 30, 2014.  The Company deems this to be a related party expense as the prior owners of Quest Solution, Inc. are the controlling shareholders of the insurance company.  As of January 1, 2014, the Company will not be renewing any of these policies once they expire.  In the 3 months ended March 31, 2014, $347,261 was expensed in cost of good sold, related party.