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9. RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
NOTE 9. RELATED PARTY TRANSACTIONS

For each of the respective quarters ended March 31, 2016 and 2015, the Company incurred fees for legal services rendered by Harold Paul in the amount of $15,000. Mr. Paul is also director of the Company.

 

In September 2015, the Company issued 100,000 shares of common stock valued at $47,000 to E.J. Shane, the CEO’s daughter, as an incentive to accept the position as the Chief Compliance and Regulatory Officer.

 

As of March 31, 2016 and December 31, 2015, the Company had account receivable balances from three entities under common control and owned by an employee of $120,400 and $210,686, respectively. For the quarters ended March 31, 2016 and 2015, there were sales made to these three entities in the amounts of $0 and $241,577, respectively.

 

In January, 2016, the Company entered into a distributor agreement with TOMI Asia to facilitate growth in the Asian region, specifically including China and Indochina, and excluding South Korea, Australia and New Zealand. Wee Ah Kee, a principal stockholder of TOMI, is the Chief Executive Officer of TOMI Asia. The agreement is for an initial two-year term and sets a revenue target of $5.5 million of TOMI's products during the term.