Quarterly report pursuant to Section 13 or 15(d)

NOTE 2. RELATED PARTY TRANSACTIONS

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NOTE 2. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
NOTE 2. RELATED PARTY TRANSACTIONS

As of June 30, 2016 and December 31, 2015, the Company had payables due to officers, for accrued compensation and services of $469,156 and $412,656 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. As of June 30, 2016, $110,893 of AP was converted into 1,232,144 common shares. All gains for a related party transaction are recorded to additional paid-in capital, therefore the difference between the value of shares and the accounts payable was transferred to additional paid-in capital for this transaction.

 

On July 1, 2015, the Company amended a note payable agreement with Lanphere Law Group, the company's 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.

 

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.