NOTE 3. RELATED PARTY TRANSACTIONS |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Notes to Financial Statements | |
| NOTE 3. RELATED PARTY TRANSACTIONS |
As of September 30, 2017, and December 31, 2016, the Company had payables due to officers, for accrued compensation and services of $1,088,739 and $1,111,754 respectively.
On December 3, 2014, as part of a related party note payable agreement, the company agreed to convert 50% of certain outstanding accounts payable to common stock at a price of .09 per share. Per this agreement as of September 30, 2017 and the year ended December 31, 2016, approximately $184,956 of accounts payable is convertible into 1,940,189 shares and $147,633 is convertible into 1,640,365 shares, respectively.
On July 1, 2015, the Company amended a note payable agreement with Lanphere Law Group, the companys largest shareholder, which forgave $108,000 of the principal balance. The original principal balance on the note was $214,335 and the new principal balance on the note after the debt forgiveness is $106,335.
On February 10, 2017, a related party irrevocably elected to exercise options in order to acquire 32,248,932 shares of the Companys common stock in exchange for an aggregate exercise price of $112,871 which was used for the deduction of the principal and accrued interest of a related party note payable. The balance of the note after the debt deduction is $31,661.76.
The Company entered into a lease agreement with Lanphere Law Group, whereas the Company is the tenant and is paying monthly rent of $4,100. |