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Related Party Transactions Disclosure
 12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure

9. Related Party Transactions:

 

During 2012 and 2013, the Whitehead Trust and the Company entered into the following transactions:

 

•On April 17, 2012, the Whitehead Trust loaned the Company $133,603 in exchange for the issuance of a convertible note, which accrued interest at an annual rate of four percent.

 

•On August 8, 2012, the Whitehead Trust advanced an additional loan to the Company in the amount of $32,397, and such loan accrued interest at an annual rate of four percent.

 

•On August 28, 2012, the Whitehead Trust loaned the Company $25,000 in exchange for the issuance of a promissory note, which accrued interest at an annual rate of four percent.

 

•On December 11, 2012, the Company entered in a note conversion agreement with the Whitehead Trust. Pursuant to the note conversion agreement, on December 11, 2012, the Company converted $300,013 in debt owed by the Company to the Whitehead Trust (including, but not limited to, the debt related to three loans described above) into shares of Common Stock at a conversion rate of $0.60 per share (post-split), resulting in the issuance of 500,021 shares (6,000,250 pre-split shares) of Common Stock to the Whitehead Trust. Upon the issuance of such shares, such debt owed by the Company to the Whitehead Trust was deemed paid in full and certain notes issued by the Company and the other obligations relating to such debt were terminated.

 

•As of December 31, 2013, the Company executed a promissory note payable to the Whitehead Trust in the aggregate principal amount of $91,580, which accrues interest at an annual rate of four percent and was executed to evidence certain amounts previously loaned to the Company. Additional information about this loan is located in Item 9.B Other Information.

 

Albert E. Whitehead, the Chief Executive Officer of the Company and Chairman of its Board of Directors, is the trustee of the Whitehead Trust.