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

Related party transactions included the following:

   
Three months ended
September 30, 2012
 
Three months ended
September 30, 2011
 
Nine months ended
September 30, 2012
 
Nine months ended
September 30, 2011
Development costs:
               
Consulting services
rendered by an individual
whom is a director and
officer of the Company
$
15,000
$
15,000
$
45,000
$
45,000
                 
Interest expense:
               
Promissory notes issued to
relatives of the Chairman
 
76,557
 
76,847
 
229,670
 
157,238
Lines of credit from
Chairman and relatives of
Chairman
 
108,707
 
41,284
 
286,740
 
69,073
Stock options granted to
relatives of directors
 
-
 
479,765
 
2,384,654
 
479,765
                 
Selling, general and
administration:
               
Consulting services
rendered by an individual
whom is a director and
officer of the Company
 
47,400
 
47,400
 
142,200
 
142,200

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).