ACCOUNTS PAYABLE TO RELATED PARTY

12 Months Ended

Dec. 31, 2014

Accounts Payable To Related Party

ACCOUNTS PAYABLE TO RELATED PARTY

4. ACCOUNTS PAYABLE TO RELATED PARTY

The accounts payable to related party balance was owed to Sperco, LLC (“SLLC”) (an entity controlled by Stephen J. Sperco, the Company’s former CEO/President/Director) and is summarized below:

	12/31/2014		12/31/2013
During November 2009, Bluegate entered into an Asset Sale and Purchase Agreement to sell certain assets to SLLC, and as a result, these balances represent funds collected by Bluegate on behalf of SLLC. These balances were reduced each year by $52,000 as a result of SLLC agreeing to pay Bluegate for office space and associated services for the Sperco entities for the period from July 1, 2010 through July 31, 2011.	$	—	$	46,766
As a result of the November 2009 transaction, commencing January 1, 2010, Bluegate had no employees and agreed to pay SLLC a monthly amount of $15,000 for management, accounting and administrative services, as well as, infrastructure and network engineering support. In August 2012 the monthly amount was $18,500 and beginning September 2012 the monthly amount was revised to $15,500 to reflect support for a new project engagement.		—		641,500
Commencing August 1, 2011, SLLC and Bluegate moved from Suite 600 to Suite 350 and Bluegate agreed to pay SLLC $1,000 rent on a month-to-month basis.		—		29,000
	$	—	$	717,266

On September 11, 2014, the payables were assigned to Tang Chuan Choon, a third party. Thus, the balances were reduced to $0 as of December 31, 2014. Also see Note 7.