Annual report pursuant to Section 13 and 15(d)

Note 14 - RELATED PARTY TRANSACTIONS

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Note 14 - RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2013
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 years ended December 31, 2013 and 2012, the Company incurred $227,360 and $52,500 as consulting fees, respectively. As of December 31, 2013 and 2012, there was an unpaid balance of $162,850 and $62,225, 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 year ended December 31, 2013, the Company incurred $212,360 and $-0- as consulting fees and expense reimbursements. During the year ended December 31, 2012, the Company incurred $77,794 and $6,379 as consulting fees and expense reimbursements. As of December 31, 2013 and 2012, there was an unpaid balance of $142,459 and $65,774, 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 years ended December 31, 2013 and 2012, the Company incurred $125,000 and $-0- as consulting fees, respectively. As of December 31, 2013 and 2012, there was an unpaid balance of $105,390 and $-0-, respectively.

 

West Coast Health Consulting, Inc. is a company controlled by Jorge Andrade that previously provided consulting services to the Company. During the years ended December 31, 2013 and 2012, the Company incurred $-0- and $2,026 as consulting fees, respectively. As of December 31, 2013 and 2012, 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. As of December 31, 2013, $91,140 in consulting fees were incurred and as of December 31, 2012, $-0- in consulting fees was incurred. As of December 31, 2013 and 2012, there was an unpaid balance of 72,640 and $-0-, 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. As of December 31, 2013, $7,000 in consulting fees were paid and as of December 31, 2012, $-0- in consulting fees was paid. As of December 31, 2013 and 2012, there was an unpaid balance of $26,189 and $-0-, respectively.

 

As described in Note 6, the Company granted a sub-license agreement for ten years amongst the Company, Kryptonite Investments LLC (“Kryptonite Investments”) and Trinity dated April 8, 2013 for the state of Arizona.

 

As described in Note 11, the Company has outstanding $316,042 in outstanding advances and notes payable to officers of the Company as of December 31, 2013.

 

As described in Note 15, the Board of Directors of the Company authorized the execution of a letter of understanding dated December 30, 2013 with Trinity Rx Solutions LLC (“Trinity Rx”) and Sal Amodeo, the sole member of Trinity Rx (“Amodeo”) to acquire substantially all the assets of Trinity Rx. Amodeo owns 1,000,000 shares of the Company’s common stock through a consulting agreement, is an grantee of a sub-licensing agreement as described in Note 6 and the Company acquired our licensing rights from Trinity represented by our intangible asset.