Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 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 and prior 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 nine months ended September 30, 2015, the Company incurred $29,167 and $100,000, respectively, and during three and nine months ended September 30, 2014, the Company incurred $18,750 and $56,250, respectively, as consulting fees and expense reimbursements. As of September 30, 2015 and December 31, 2014, there was an unpaid balance of $143,745 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 nine months ended September 30, 2015, the Company incurred $43,750 and $114,583, respectively, and during the three and nine months ended September 30, 2014, the Company incurred $56,510 and $94,010, respectively, as consulting fees. As of September 30, 2015 and December 31, 2014, there was an unpaid balance of $147,413 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 nine months ended September 30, 2015 the Company incurred $43,750 and $114,583, respectively and during the three and nine months ended September 30, 2014, the Company incurred $37,760 and $75,260, respectively, as consulting fees. As of September 30, 2015 and December 31, 2014, there was an unpaid balance of $92,349 and $45,196, respectively. 

 

The Company has an arrangement with Kent Emry, an 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 nine months ended September 30, 2015 the Company incurred $6,250, and during the three and nine months ended September 30, 2014, the Company incurred $18,750 and $56,250, respectively, as consulting fees. As of September 30, 2015 and December 31, 2014, there was an unpaid balance of $34,375 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.