7. Related Party Transactions

9 Months Ended

Sep. 30, 2014

7. Related Party Transactions

Related party transactions included the following:

	Three months ended September 30, 2014 (unaudited)		Three months ended September 30, 2013 (unaudited)		Nine months ended September 30, 2014 (unaudited)		Nine months ended September 30, 2013 (unaudited)
Interest expense:
Promissory notes issued to relatives of the Chairman	$	76,557	$	76,557	$	229,670	$	229,670
Lines of credit from Chairman and relatives of the Chairman		194,069		182,817		547,249		418,594
General, selling and administration:
Consulting fees to a Company controlled by director of the Company in his role as a consultant to the Company		45,000		31,500		119,500		94,500
Consulting services rendered by an individual who 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.

Included in accounts payable is $16,545 (2013: $Nil) due to a company controlled by a Director and Officer of the Company.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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