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9. RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2016
Related Party Transactions [Abstract]  
NOTE 9. RELATED PARTY TRANSACTIONS

 

As of September 30, 2016 and December 31, 2015, the Company had accounts receivable balances from three entities under common control and owned by an employee of $123,786 and $210,686, respectively. For the three and nine months ended September 30, 2016, there were sales made to these three entities in the amounts of $0 and $3,385, respectively. For the three and nine months ended September 30, 2015, there were sales made to these three entities in the amounts of $0 and $250,000, respectively. The individual was a consultant for TOMI in 2015 and became an employee in 2016.

 

For the three and nine months ended September 30, 2016, the Company incurred fees for legal services rendered by Harold Paul in the amount of $15,000 and $45,000, respectively. For the three and nine months ended September 30, 2015, the Company incurred legal fees to Mr. Paul of approximately $116,250 and $146,250. Mr. Paul is also a director of the Company.

 

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, Japan, Australia and New Zealand. Wee Ah Kee, a principal stockholder of TOMI, is the Chief Executive Officer of SteraMist Asia.   The agreement was amended in June and further amended in August of 2016 and TOMI Asia changed their name to SteraMist Asia.  The new agreement is for an initial three-year term and provides for revenue targets.  No sales were made under the agreement for the nine months ended September 30, 2016.