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Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Related Party Transactions  
Related Party Transactions

Note 4: Related Party Transactions

 

The Company’s 600 square foot executive office located in Redlands, California, is being leased on a month-to-month basis from a stockholder of the Company at a rate of $1,100 per month. A $1,000 deposit was paid at the commencement of the lease. At December 31, 2011 and 2010, the Company had prepaid one month of rent in the amount of $1,100. Total rent expense paid for the year ended December 31, 2011 and 2010 was $13,200 and $12,700, respectively.

 

In September 2011, the Company entered into a non-binding letter of intent with stockholders owning a majority of the issued and outstanding common stock of Stanford (“Stanford Majority Stockholders”). The Stanford Majority Stockholders are also stockholders of the Company. In conjunction with the non-binding letter of intent, the Company paid a $250,000 non-refundable transaction fee to Stanford. Subsequently the Company made advances to Stanford which, at December 31, 2011 amounted to $850,000 and are included in related party notes and interest receivable on the balance sheet. On January 30, 2012, the Company entered into a note receivable with Stanford in the amount of $1,006,978 (which amount includes accrued interest through the date of the note) bearing interest at 5% per annum from the time of each advance. At December 31, 2011, the Company recorded accrued interest receivable in the amount of $3,122. See Note 6 Subsequent Events.