v2.4.0.6
7. Related Party Transactions
 3 Months Ended
Mar. 31, 2013
Related Party Transactions Disclosure [Text Block]
7.    Related Party Transactions

Related party transactions included the following:

   
Three months ended
March 31, 2013
(unaudited)
 
Three months ended
March 31, 2012
(unaudited)
Development costs:
       
Consulting services rendered by an individual who is a director
and officer of the Company
$
-
$
15,000
 
       
Interest expense:
       
Promissory notes issued to relatives of the Chairman
 
76,557
 
76,557
Lines of credit from Chairman and relatives of the Chairman
 
125,884
 
82,142
Stock options granted to Chairman of the Company
 
-
 
231,948
 
       
Selling, general and administration:
       
Consulting services rendered by an individual who is a director
and officer of the Company
 
47,400
 
47,400

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.