Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2016, the Company incurred $-0-, and during three and nine months ended September 30, 2015, the Company incurred $29,167 and $100,000, respectively, as consulting fees and expense reimbursements. As of September 30, 2016 and December 31, 2015, there was an unpaid balance of $64,638 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. Until June 17, 2016, there was 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, 2016, the Company incurred $40,000 and $126,756, respectively, and during the three and nine months ended September 30, 2015, the Company incurred $43,750 and $114,583, respectively, as consulting fees. As of September 30, 2016 and December 31, 2015, there was an unpaid balance of $91,465 and $191,013, respectively.

 

On June 17, 2016, the Company entered into an executive service contract with Felix Financial Enterprises LLC to provide consulting services. The agreement is an at will agreement and provides for a base salary of $160,000 per year, 11,200,000 stock options, extended previously issued options and auto allowance.

 

The Company has an arrangement with Brady Granier, an officer of the Company. Until June 17, 2016 there was 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, 2016, the Company incurred $43,750 and $131,250 , respectively and during the three and nine months ended September 30, 2015, the Company incurred $43,750 and $114,583, respectively, as consulting fees. As of September 30, 2016 and December 31, 2015, there was an unpaid balance of $64,481 and $137,045, respectively.

 

On June 17, 2016, the Company entered into an executive service contract with Brady Granier as the Company's President and Chief Executive Officer. The agreement is an at will agreement and provides for a base salary of $175,000 per year, 10,600,000 stock options, extended previously issued options and auto allowance.

 

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, 2016 the Company incurred $-0- and $33,558, respectively , and during the three and nine months ended September 30, 2015, the Company incurred $6,250, as consulting fees. As of September 30, 2016 and December 31, 2015, there was an unpaid balance of $80,433 and $53,125, respectively.

 

On June 17, 2016, the Company entered into an executive service contract with Tom Welch as the Company's Vice President of Operations. The agreement is an at will agreement and provides for a base salary of $140,000 per year, 11,200,000 stock options, extended previously issued options and auto allowance.

 

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.