XML 19 R10.htm IDEA: XBRL DOCUMENT

Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 4. RELATED PARTY TRANSACTIONS

Prior to October 18, 2016, the Company’s employees provided administrative/accounting support for three golf retail stores, named Saint Andrews Golf Shop ("SAGS"), Las Vegas Golf and Tennis ("Boca Store") and Las Vegas Golf and Tennis Superstore (“Westside 15 Store”), owned by Ronald Boreta, the Company's President, and his brother, John Boreta, a Director of the Company. The SAGS store is the retail tenant in the TMGE.

Administrative/accounting payroll and employee benefits expenses were allocated based on an annual review of the personnel time expended for each entity. Amounts allocated to these related parties by the Company were $21,744 and $20,925 for the years ended December 31, 2016 and 2015, respectively. The Company recorded this allocation by reducing the related expenses and allocating them to the related parties.

In addition to the administrative/accounting support provided by the Company to the above stores, the Company received funding for operations from these and various other stores owned by the Company’s President and his brother, and the former Chairman. These funds helped pay for office supplies, phone charges, postages, and salaries. The net amount due to these stores totaled $61,824 and $1,724,286 as of December 31, 2016 and 2015, respectively. The amount for 2015 included $511,220 related to the discontinued operations. The amounts were non-interest bearing and due out of available cash flows of the Company. Additionally, the Company has the right to offset the administrative/accounting support against the funds received from these stores.

Through October 18, 2016, both Ronald Boreta and John Boreta continued to defer half of their monthly salaries until the Company is in a more positive financial state. The amounts deferred for the years ended December 31, 2016 and 2015 were $85,000 and $97,500, respectively. The obligations to pay the deferred salaries were assumed by AAGC in connection with the closing of the Transfer Agreement.

Notes and Interest Payable to Related Parties:

The Company had various notes and interest payable to the following entities as of December 31, 2016, and December 31, 2015, respectively:

			2016			2015
From Continuing Operations:

Various notes payable to Vaso Boreta bearing interest rate of 10% per annum and due on demand (1)		$	-		$	3,200,149


Note payable to BE Holdings 1, LLC, owned by the chairman of the board, bearing interest rate of 10% per annum and due on demand (2)			-			100,000
Total from continuing operations		$	-		$	3,300,149
From Discontinued Operations:
Various notes payable to SAGS, bearing interest rate of 10% per annum and due on demand (3)		$	-		$	704,656

Various short term notes payable to the Westside 15 Store, bearing interest rate of 10% per annum and due on demand (4)			-			93,921

Note payable to BE III, LLC bearing interest rate of 10% per annum and due on demand (5)			-			200,500
Total from discontinued operations						999,077
Total		$	-		$	4,299,226

1)	Vaso Boreta is the former Chairman of the Board of the Company who passed away in October 2013.
2)	BE Holdings 1, LLC is owned by Ronald Boreta and John Boreta.
3)	Saint Andrews Golf Shop is owned by Ronald Boreta and John Boreta.
4)	The Westside 15 Store is owned by Ronald Boreta and John Boreta
5)	BE III, LLC is owned by Ronald Boreta and John Boreta.

All maturities of related party notes payable and the related accrued interest payable as of December 31, 2016 were due and payable upon demand.

As of December 31, 2016 and 2015, accrued interest payable - related parties related to the notes payable – related parties totaled $0 and $6,205,675, respectively. The total for 2015 includes $868,680 related to the discontinued operations. On October 18, 2016 all of the notes and accrued interest were cancelled as part of the closing of the Transfer Agreement.

Lease to SAGS

AAGC subleases space in the clubhouse to SAGS. Base rent includes $13,104 per month through July 2013 with a 5% increase for each of two 5-year options to extend in July 2013 and July 2017. For the years ending December 31, 2016 and 2015, the Company recognized rental income totaling $163,800 and $163,800, respectively which in now part of the discontinued operations included under Liabilities held for sale.