Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Note 14 - 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 months ended March 31, 2016 and 2015, the Company incurred $-0- and $27,083, respectively, as consulting fees and expense reimbursements. As of March 31, 2016 and December 31, 2015, there was an unpaid balance of $139,638 and $154,638, 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 months ended March 31, 2016 and 2015, the Company incurred $43,750 and $27,083, respectively, as consulting fees. As of March 31, 2016 and December 31, 2015, there was an unpaid balance of $193,763 and $191,013, 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 months ended March 31, 2016 and 2015 the Company incurred $43,750 and $27,083, respectively, as consulting fees. As of March 31, 2016 and December 31, 2015, there was an unpaid balance of $139,795 and $137,045, 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 months ended March 31, 2016 and 2015, the Company incurred $18,750 and $-0-, respectively, as consulting fees. As of March 31, 2016 and December 31, 2015, there was an unpaid balance of $65,625 and $53,125, 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.