Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Note 16 - RELATED PARTY TRANSACTIONS

The Company has an arrangement with Premier Aftercare Recovery Service, (“PARS”). PARS is a Company controlled by Neil Muller, a shareholder of the Company, that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration is $14,583 per month. During the three and six months ended June 30, 2015, the Company incurred $43,750 and $70,833, respectively, and during three and six months ended June 30, 2014, the Company incurred $25,000 and $37,500, respectively, as consulting fees and expense reimbursements. As of June 30, 2015 and December 31, 2014, there was an unpaid balance of $77,378 and $60,675, respectively. 

 

The Company has an arrangement with Felix Financial Enterprises (“FFE”). FFE is a Company controlled by Lourdes Felix, an officer of the Company, that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration is $14,583 per month. During the three and six months ended June 30, 2015, the Company incurred $43,750 and $70,833, respectively, and during the three and six months ended June 30, 2014, the Company incurred $25,000 and $37,500, respectively, as consulting fees. As of June 30, 2015 and December 31, 2014, there was an unpaid balance of $116,963 and $100,260, respectively.

  

The Company has an arrangement with Brady Granier, an officer of the Company. There is no formal agreement between the parties and the amount of remuneration is $14,583 per month. For the three and six months ended June 30, 2015 the Company incurred $43,750 and $70,833 , respectively and during the three and six months ended June 30, 2014, the Company incurred $18,750 and $37,500, respectively, as consulting fees. As of June 30, 2015 and December 31, 2014, there was an unpaid balance of $61,899 and $45,196, respectively. 

 

The Company has an arrangement with Kent Emry, a shareholder and prior officer of the Company. There is no formal agreement between the parties and the amount of remuneration is $6,250 per month. For the three and six months ended June 30, 2015 the Company incurred $-0- , and during the three and six months ended June 30, 2014, the Company incurred $18,750 and $37,500, respectively, as consulting fees. As of June 30, 2015 and December 31, 2014, there was an unpaid balance of $28,125 and $28,125, respectively. 

 

The above related parties are compensated as independent contractors and are subject to the Internal Revenue Service regulations and applicable state law guidelines regarding independent contractor classification. These regulations and guidelines are subject to judicial and agency interpretation, and it could be determined that the independent contractor classification is inapplicable.