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Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note F - Related Party Transactions

At December 31, 2010, Mr. Turner owed us $96,783 in non-interest bearing loans he received from us prior to July 31, 2002; we also owed Mr. Turner $96,783 on a non-interest bearing basis as a result of salaries that accrued without payment during 1997 through 2001 (in excess of the $443,772 in accrued salary that Mr. Turner waived on December 31, 2001). During each of 2010 and 2011, Mr. Turner waived $60,000 of unpaid accrued salary. There has been no material modification of the terms of either indebtedness since the enactment of Section 402 of the Sarbanes-Oxley Act of 2002. As of December 31, 2011 and 2010 this arrangement resulted in a net zero balance.

Our officers and directors made the following loans to the company during 2010.

 

2010   Additions     Payments     Balance  
Tracy Madsen(A)   $ 61,050     $ (61,050 )   $ -  
                         

 

(A) Loans from Mr. Madsen were made from Avcon Services, Inc., a company owned and controlled by him. Avcon Services, Inc. was paid $0 and $23,182 in interest during 2011 and 2010, respectively.

 

During 2011 there were no loans made by officers or directors to the company.

 

Deferred salary

As of December 31, 2011 and 2010 we owed the following officers accrued compensation.

 

Officer Deferred Compensation   Position   2011     2010  
Terry C. Turner   Chief Executive Officer   $ -     $ 42,800  
Total       $ -     $ 42,800  

 

As of December 31, 2010, we had accrued $18,044 in interest on unpaid past due wages that was due to Terry Turner. All deferred wages owed to Mr. Turner were paid during 2011 with the exception of unpaid accrued salary described in the first paragraph of this section.