RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

Transactions with related parties and their affiliates are made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other unaffiliated third parties, and do not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. Related parties include the following:

●	Robert DelVecchio, an officer and a member of the board of directors of the Company and his affiliate Brockington Securities, Inc. (collectively, “DelVecchio”).

●	Pinewood Trading Fund, LP and its managing partner Jack E. Brooks, who beneficially own approximately 93.5% of the Company’s Series D Preferred Stock and 11% of the Company’s Series B Preferred as of June 30, 2014.

Outstanding debt to related parties consisted of the following at June 30, 2014:


	DelVecchio		Pinewood		Total

Notes payable - revolving	$	527,000	$	-	$	527,000
Notes payable		-		440,000		440,000
Accrued interest		33,974		39,136		73,110

	$	560,974	$	479,136	$	1,040,110

- 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.

+ References+ Details