Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

v2.4.0.8
Related Party Transactions
 12 Months Ended
Dec. 31, 2013
Notes  
Related Party Transactions

10.  RELATED PARTY TRANSACTIONS:

 

The Company has a consulting arrangement and a Senior Subordinated note payable with Mr. Rich Giles, a founder, stockholder, and former director of the Company.  The following table outlines payments to Mr. Giles for the years ended December 31:

 

 

2013

2012

Consulting fees

$ 189,600

$ 196,400

Sr. Subordinated interest payments

57,500

60,000

Sr. Subordinated principal payments

$ 500,000

$ --

 

During the year ended December 31, 2013, Mr. Gus Blass III, a member of our board of directors and a stockholder, held $125,000 of the senior secured notes payable in an individual capacity and $125,000 through an entity in which he is a managing member.  The senior secured notes payable, principal and interest, were paid in full to Mr. Blass on September 15, 2013. Mr. Blass also received dividends from preferred stock in 2013 totaling $5,979.

 

During the year ended December 31, 2012, the Company paid consulting fees of $45,000 to Mr. Garland, former Chief Executive Officer and Director of the Company, before he was hired as the Company’s Chief Executive Officer. 

 

Also during the year ended December 31, 2012 the Company paid consulting fees of $12,500 to Larry Griffin, a founder, and former executive officer of the Company.