Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 15 - 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 months ended March 31, 2015 and 2014, the Company incurred $27,083 and $12,500, respectively, as consulting fees and expense reimbursements. As of March 31, 2015 and December 31, 2014, there was an unpaid balance of $69,628 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 months ended March 31, 2015 and 2014, the Company incurred $27,083 and $12,500 as consulting fees, respectively. As of March 31, 2015 and December 31, 2014, there was an unpaid balance of $109,213 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 months ended March 31, 2015 and 2014, $27,083 and $18,750 in consulting fees were incurred, respectively. As of March 31, 2015 and December 31, 2014, there was an unpaid balance of $54,149 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 three months ended March 31, 2015 and 2014, $-0- and $18,750 in consulting fees were incurred, respectively. As of March 31, 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.