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11. RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2015
Related Party Transactions [Abstract]  
11. RELATED PARTY TRANSACTIONS

In 2009, the Company executed a 10% convertible note payable in the amount of $102,236 originally due December 31, 2010 to John Evey for amounts loaned to the Company. Mr. Evey joined the Board of Directors on April 27, 2010. Through a series of extensions, the note due date was extended to December 31, 2015. During the nine month period ended September 30, 2015, the Company made principal payments totaling $9,000 on this note. The balance of the note as of September 30, 2015 is $89,616 with accrued interest amounting to $33,703 (See note 5).

 

As partial payment for professional services provided by GreenCore Capital, LLC (“GreenCore’) during the nine months ended September 30, 2015, the Company made cash payments amounting to $36,000, recorded additional payments of $18,000 in accounts payable and issued 373,107 shares of the Company’s common stock with a per share fair value between $0.13 and $0.18 (based on an average market value of the stock when earned as defined in the agreement) or $54,000 and expensed the payments at issuance. Jay Potter, our director, is the managing member of GreenCore and the primary individual performing the services (See note 9).

 

During the nine month period ended September 30, 2015, the Company released 277,776 shares of common stock with a per share fair value of $0.15, or $41,666 (based on the market price at the time of the agreement), to two directors for their service as defined in their respective Restricted Stock Grant Agreements. The payments were expensed at issuance (See note 9).

 

In June 2015, Robert Noble, our past Chairman and current director, purchased a 70.0066819% stake in the convertible note payable owed to Gemini Master Fund which became due on June 30, 2015. As of September 30, 2015, Mr. Noble’s stake in this note amounts to $600,000 in principal and $113,211 of accrued interest. Further, in regards to the remaining note and until further negotiations of the terms can be agreed to and finalized, Robert Noble has agreed to an extension subject to his right to terminate the extension at any time, giving the Company 48 hours written notice, in the case that the parties do not come to a satisfactory conclusion to the negotiations or for any other reason (See note 5).

 

During the nine months ended September 30, 2015, pursuant to a private placement, the Company issued 3,666,667 shares of common stock for cash with a per share price of $0.15 per share or $550,000 to Keshif Ventures LLC, a shareholder who owns approximately 20% of the Company’s common stock (see note 9).

 

The Company entered into a lease agreement with Desmond Wheatley, our CEO, whereas the Company leases a pickup truck that the Company uses in its operations primarily in the delivery of EV ARC™ units. The lease calls for a payment of $1,850 per month plus $0.15 per mileage of usage. These amounts are based on third party market prices for similar vehicle leases. We have accrued or paid $13,477 during the nine months ended September 30, 2015. This lease was subsequently terminated in October 2015.