XML 50 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
NOTE 5 RELATED PARTY TRANSACTIONS

 

The Company has provided surveillance services since 2005 at a pre-established rate to entities owned by Ross Farnsworth, either through a family partnership or through his majority-owned LLC, and subsequently Ross Farnsworth became a shareholder of the Company in 2006. Mr. Farnsworth’s holdings are less than 5% of the Company, but the revenue for the period ending March 31, 2013 was $16,718, and there was a trade accounts receivable balance of $0 at March 31, 2013.

 

On November 19, 2012, the Company entered into a separate convertible debenture agreement with a different Board Member for $100,000. Interest is payable at 10% per annum, payable on the maturity date of May 19, 2013. The Company issued warrants to purchase 10,000 shares of the Company Stock, at an exercise price of $ 1.10. The debenture is convertible into shares of Compan]y Common Stock on or before the Maturity Date, at a conversion rate of $1.10 per share.

   $ 100,000  
On June 20, 2012, the Company entered into a separate debenture agreement with a different Board Member for $200,000. Interest is payable at 12% per annum, payable on the maturity date of June 20, 2013. The Company issued warrants to purchase 20,000 shares of the company stock, at an exercise price of $ 1.00. Accordingly, the Company recognized a discount of $16,789 on the principal value of the $200,000 and is amortizing the discount over the 12 month term of the debenture.     200,000  
On October 24, 2011, the Board of Directors approved the issuance of the warrants. Accordingly, the Company recognized a discount of $16,909 on the principal value of the $45,000 note payable and is amortizing the discount over the 12 month life of the note. On May 14, 2013, the Company paid off the principal balance plus interest totaling $48,418.     45,000  
Less: Debt Discount     (4,197 )
Total Due to Related Parties, Net of debt discount   $ 340,803  

  

The debenture entered into on June 20, 2012 is convertible into shares of Company Common Stock on or before the Maturity Date, at a conversion rate of $1.00 per share.