|
RELATED PARTY TRANSACTIONS
|
9 Months Ended | 12 Months Ended |
|---|---|---|
|
Sep. 30, 2011
|
Dec. 31, 2010
|
|
| RELATED PARTY TRANSACTIONS |
12. RELATED PARTY
TRANSACTIONS
As discussed in Note 8 – Notes Payable, a current member of
the Company’s Board of Directors directly owns notes
convertible in common shares, and warrants to purchase common
shares. In addition, this director is indirectly related
to Lender 2 and other holders of convertible
notes.
As discussed in Notes 7 and 10 above, the Company entered into an
asset purchase agreement and an employment agreement with a former
executive and majority owner of the Seller of the Disintegrator
patent. These agreements call for additional
consideration and compensation payments based on the achievement of
certain revenue and capital targets.
|
13. RELATED PARTY TRANSACTIONS
Our
chief executive officer of the Company periodically advances funds
to the Company on a short-term, non-interest bearing basis for
working capital purposes. As of December 31, 2009,
$5,000 was due to this executive and such amount was repaid on
January 9, 2010. See Note 8 – Notes Payable for
additional information regarding loans from related
parties.
As
discussed in Note 8 – Notes Payable, a current member of our
Board of Directors directly owns notes convertible in common shares
and warrants to purchase common shares. In addition,
this director is directly and indirectly related to Lender 2 and
other holders of convertible notes.
In
October 2008, the Company entered into a license agreement with a
relative of the chief executive officer. The license
agreement calls for the payment of royalties equal to 20% of
revenues from the Company’s sales or permitted use of certain
copyrighted and trademarked, print and video
material. The license agreement continues for successive
one year terms unless terminated by either party. During
year ended December 31, 2010, no amounts were paid or accrued under
this license agreement.
As
discussed in Note 6 – Patent and in Note 12 –
Commitments and Contingencies, the Company entered into an asset
purchase agreement and an employment agreement with a former
executive and majority owner of the Seller of the Disintegrator
patent. These agreements call for additional
consideration and compensation payments based on the achievement of
certain targets.
|