Quarterly report pursuant to Section 13 or 15(d)

Note 14 - RELATED PARTY TRANSACTIONS

v2.4.0.8
Note 14 - RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2014
Notes to Financial Statements  
Note 14 - RELATED PARTY TRANSACTIONS

The Company has an arrangement with Terranautical Global Investments (“TGI”). TGI is a company controlled by Jorge Andrade that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration is $6,250 per month. During the three and six months ended June 30, 2014, the Company incurred $25,000 and $37,500 as consulting fees, respectively. During the three and six months ended June 30, 2013, the Company incurred $50,000 and $96,667 as consulting fees, respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $174,100 and $162,850, respectively.

 

The Company has an arrangement with Premier Aftercare Recovery Service, (“PARS”). PARS is a Company controlled by Neil Muller that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration is $6,250 per month. During the three and six months ended June 30, 2014 the Company incurred $25,000 and $37,500, respectively, as consulting fees and expense reimbursements. During the three and six months ended June 30, 2013, the Company incurred $50,000 and $96,667 as consulting fees and expense reimbursements., respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $-0- and $142,459, respectively.

 

The Company has an arrangement with Felix Financial Enterprises (“FFE”). FFE is a Company controlled by Lourdes Felix that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration is $6,250 per month. During the three and six months ended June 30, 2014, the Company incurred $25,000 and $37,500 as consulting fees, respectively. During the three and six months ended June 30, 2013, $50,000 and $62,500 consulting fees were incurred, respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $69,140 and $105,390, respectively.

 

West Coast Health Consulting, Inc. is a company controlled by Jorge Andrade that previously provided consulting services to the Company. During the three and six months ended June 30, 2014 , the Company incurred $-0- and $-0- as consulting fees, respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $-0- and $-0-, respectively.

 

The Company has an arrangement with Brady Granier. 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, 2014, $18,750 and $37,500 in consulting fees were incurred, respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $34,890 and $72,640, respectively.

 

The Company has an arrangement with Kent Emry. 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, 2014, $18,750 and $37,500 in consulting fees were incurred, respectively. As of June 30, 2014 and December 31, 2013, there was an unpaid balance of $-0- and $26,189, 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.