Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

v3.19.1
Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 7 – Related Party Transactions

 

Two executive officers and the operations manager of the Company have agreed to defer a portion of their compensation until cash flow improves. As of December 31, 2018 and 2017, the balances of their deferred compensation was $933,150 and $922,425 which reflects $840,000 accrual of deferred compensation and $829,275 cash repayments of deferred compensation during the year ended December 31, 2018 and $894,394 accrual of deferred compensation, $1,173,297 cash repayments and the conversion of $660,000 of deferred compensation into stock options of the Company during the year ended December 31, 2017.

 

From time-to-time officers and the operations manager of the Company advance monies to the Company to cover costs. During the years ended December 31, 2018 and 2017, officers advanced $65,000 and $26,000 of funds to the Company of which $87,000 and $11,500 were repaid during the years then ended. Also, during the years ended December 31, 2018 and 2017 accrued interest was repaid in an amount of $20,400 and $22,100, respectively. The balance of short-term advances due to two officers and executives of the Company at December 31, 2018 and 2017 was $0 and $20,323, respectively.

 

During the year ended December 31, 2017, an officer and executive of the Company entered into note payable agreements for $100,000. At December 31, 2018 and 2017, notes payable remain outstanding to this officer and executive of the Company, in the amounts of $270,000 and $270,000, respectively. At December 31, 2018 and 2017, accrued interest on these notes payable totaled $32,046 and $21,983, respectively, and are included in accounts payable and accrued expenses on the consolidated balance sheet.