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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2011
RELATED PARTY TRANSACTIONS
NOTE 8: RELATED PARTY TRANSACTIONS
 
During the nine months ended September 30, 2011, the Company entered into transactions with certain officers and directors of the Company as follows:
 
 
(a)
incurred $187,200 (2010 - $198,400) in management fees and $67,500 (2010 - $54,000) in research and development paid to officers and directors during the period;
 
(b)
recorded $360,260 (2010 - $973,977) in stock based compensation for the fair value of options granted to management that were granted and or vested during the period; and
 
(c)
converted $100,000 (2010 - $Nil) of debt due to related parties during the period, which were settled with shares. The Company recognized a loss of $11,030 on settlement of debt.

 
 
All related party transactions (other than stock based consideration) involving provision of services were recorded at the exchange amount, which is  the amount established and agreed to by the related parties as representing fair value. The Company accounted for the debt settlement transactions with related parties at management’s estimate of fair value, which was evidenced by quoted market price of Company’s shares in an observable market.
 
At September 30, 2011, the Company had amounts owing to directors and officers of $303,005 (December 31, 2010 - $259,305). These amounts were in the normal course of operations. Amounts due to related parties are unsecured, non-interest bearing and have no specific terms of repayment.