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RELATED PARTY TRANSACTIONS
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3 Months Ended |
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Mar. 31, 2012
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| Notes to Financial Statements | |
| Note 14. RELATED PARTY TRANSACTIONS |
On February 26, 2012, pursuant the Agreement and Plan of Merger, the Company issued an aggregate of 100 shares of Series A Preferred Stock to Derek Peterson and Amy Almsteier, both of whom are officers and directors of the Company. The stock was valued at $0.2083 per share.
On February 26, 2012, pursuant the Agreement and Plan of Merger, the Company issued an aggregate of 14,750,000 shares of Series B Preferred Stock to Derek Peterson and Amy Almsteier, both of whom are officers and directors of the Company. Each Series B Preferred share was valued at $1.1217 per share.
Derek Peterson and Amy Almsteier, officers of the Company, have provided loans to the Company since inception. On February 26, 2012 the officers converted $118,292 of such loans into the Series B Preferred Stock.
On February 26, 2012 the officers converted $150,000 of accrued salary into Series B Preferred Stock.
The Company incurred compensation expense in the amount of $16,277,200 for the issuance of Series A and Series B Preferred stock.
During the three month period ended March 31, 2012, the Company accrued an additional $37,500 of compensation for the services provided by the officers. As of March 31, 2012 the officers were owed a total of $37,500 in accrued compensation.
During the quarter ended March 31, 2012, officers and directors of the Company had loaned the Company $30,000 and were paid back $5,000. As of March 31, 2012 the total amount owed to the officers and directors was $175,000.
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