Related Party Transactions

12 Months Ended

Dec. 31, 2016

NOTE 12 - RELATED PARTY TRANSACTIONS

Accrued expenses

Included in accrued expenses on the consolidated balance sheet is approximately $1,280,000 of accrued bonus to the Company’s CEO.

Sale of Capitalized Software

On January 7, 2015, in an effort to give investors a more concentrated presence in the waste industry the Company sold the capitalized software assets of Here to Serve Technology, LLC (HTST) to Mobile Science Technologies, Inc., a Georgia corporation (MSTI), a related party due to being owned by some of the shareholders of the Company. No gain or loss was recognized on this transaction as the Company received equity equal to book value ($434,532) of the capitalized software in the exchange.

This represents approximately 15% of the equity of MSTI and is reflected in the accompanying balance sheet as “investment in related party affiliate”. The Company's investment of 15% of the common stock of MSTI is accounted for under the equity method because the company exercises significant influence over its operating and financial activities. Significant influence is exercised because both Companies have a Board Member in common.

Accordingly, the investment in MSTI is carried at cost, adjusted for the Company's proportionate share of earnings or losses.

The following presents unaudited summary financial information for MSTI. Such summary financial information has been provided herein based upon the individual significance of this unconsolidated equity method investment to the consolidated financial information of the Company.

Following is a summary of financial position and results of operations of MSTI:

Summary of Statements of Financial Condition	Year Ended December 31, 2016
Assets
Current assets	$	1,656
Noncurrent assets		2,877,313
Total assets		2,878,969

Liabilities and Equity
Current liabilities		241,189
Noncurrent liabilities		-
Equity		2,637,780
Total liabilities and equity	$	2,878,969

Summary of Statements of Operations

Revenues	$	849
Expense		23,661
Net loss	$	(22,812	)

The Company recorded losses from its investment in MSTI, accounted for under the equity method, of approximately $3,400 for the year ended December 31, 2016. The charge reflected the Company’s share of MSTI losses recorded in that period. While the Company has ongoing agreements with MSTI relating to the use of MSTI's software technology, the Company has no obligation to otherwise support the activities of MSTI.