v2.4.0.6
7. Related Party Transactions
 6 Months Ended
Jun. 30, 2012
Related Party Transactions Disclosure [Text Block]
7.         Related Party Transactions

Related party transactions included the following:

   
Three months ended
June 30, 2012
 
Three months ended
June 30, 2011
 
Six months ended
June 30, 2012
 
Six months ended
June 30, 2011
Development costs:
               
Consulting services rendered by an individual whom is a director and officer of the Company
$
15,000
$
15,000
$
30,000
$
30,000
                 
Interest expense:
               
Promissory notes issued to relatives of the Chairman
 
76,557
 
76,847
 
153,113
 
157,238
Lines of credit from Chairman and relatives of Chairman
 
95,892
 
41,284
 
178,033
 
69,073
Stock options granted to Chairman
 
2,384,654
 
479,765
 
2,383,654
 
479,765
Stock options granted to relatives of directors
 
-
 
-
 
-
 
1,493,702
                 
Selling, general and
administration:
               
Consulting services rendered by an individual whom is a director and officer of the Company
 
47,400
 
47,400
 
94,800
 
94,800

Except as discussed in the next paragraph, all transactions with related parties were incurred in the normal course of operations and measured at the exchange amount, which is the amount of consideration established and agreed upon by the transacting parties.

Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value as disclosed note 3(c).