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Related Party Transactions
 9 Months Ended
Sep. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions
11.Related Party Transactions

 

On March 26, 2009, the Company entered into a $50,000 revolving credit promissory note (the “Revolver”) with Vector Group Ltd. (“Vector”), the former controlling stockholder of the Company. On January 26, 2011, the Company and Vector entered into an amendment to the Revolver increasing the amount that the Company may borrow from $50,000 to $100,000. The loan bears interest at 11% per annum and was due on December 31, 2013. During January 2014, the Revolver was extended from December 31, 2013 to June 30, 2015. The Revolver is currently in default. As of September 30, 2015 and December 31, 2014, the balance due to Vector amounted to $73,500. As of September 30, 2015 and December 31, 2014, accrued interest related to the Revolver amounted to $42,964 and $36,833, respectively, and is included in accrued interest, related party on the accompanying condensed consolidated balance sheets. Subsequent to September 30, 2015, in connection with the Plan, the Revolver was treated as an unsecured claim and paid in accordance with the Plan as disclosed in Note 12. Under the Plan, Vector was paid $100,000. Interest expense for other related party notes payable amounted to $2,066 and $2,044 for the three months ended September 30, 2015 and 2014, respectively. Interest expense for other related party notes payable amounted to $6,131 and $6,131 for the nine months ended September 30, 2015 and 2014, respectively.

 

ConGlobal Industries, Inc. is a minority stockholder of the Company and provides containers and labor on domestic projects.  The Company recognized Cost of Goods Sold of $235,373 and $195,612, for services ConGlobal Industries, Inc. rendered during the three months ended September 30, 2015 and 2014, respectively. The Company recognized Cost of Goods Sold of $759,598 and $785,002, for services ConGlobal Industries, Inc. rendered during the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and December 31, 2014, $273,586 and $92,792, respectively, of such expenses are included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

 

The Lawrence Group is a minority stockholder of the Company and is a building design, development and project delivery firm. The Company recognized Cost of Goods Sold of $4,760 for services The Lawrence Group rendered during the nine months ended September 30, 2014. As of September 30, 2015 and December 31, 2014, $32,389, of expenses were included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

 

An affiliated accounting firm of the Company’s Chief Financial Officer provided accounting and consulting services to the Company. The Company recognized General and Administrative expenses in the amount of $30,250 and $22,300 for the three months ended September 30, 2015 and 2014, respectively. The Company recognized General and Administrative expenses in the amount of $72,250 and $64,300 for the nine months ended September 30, 2015 and 2014, respectively. As of December 31, 2014, $7,300 of expenses were included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.