XML 37 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
9. RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
NOTE 9. RELATED PARTY TRANSACTIONS

As of December 31, 2016 and December 31, 2015, we had accounts receivable balances from three entities under common control and owned by an employee aggregating $129,802 and $210,686, respectively. For the years ended December 31, 2016 and 2015, there were sales made to these three entities in the amounts of $9,402 and $256,285, respectively. As of December 31, 2016 and 2015, we had accounts payable and accrued expenses due to the employee and the three entitites in the amounts of $21,072 and $30,594, respectively. For the years ended December 31, 2016 and 2015, we incurred fees in connection with service work to the employee and the three companies in the amounts of $21,072 and $30,594, respectively. The individual was a consultant for TOMI in 2015 and became an employee in 2016.

 

For the year ended December 31, 2016, we incurred fees for legal services rendered by Harold Paul, one of our directors, in the amount of $60,000. For the year ended December 31, 2015, we paid Mr. Paul a total of $161,250 as payment for legal services rendered, comprised of $60,000 cash and 225,000 shares of common stock valued at $101,250.

 

In January 2016, we entered into a distributor agreement with TOMI Asia to facilitate growth in Asia. Wee Ah Kee, one of our significant shareholders, is the Chief Executive Officer of TOMI Asia. We amended the agreement in August 2016, at which time TOMI Asia changed its name to SteraMist Asia. The initial term of our new agreement is three years and the agreement sets revenue targets of $5.5 million, $8.5 million and $12 million of our products during 2016, 2017 and 2018, respectively. Our new agreement includes mainland China and Indochina and excludes South Korea, Japan, Australia and New Zealand. No sales were made under the agreement for the year ended December 31, 2016.