Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Note 16 - 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 year ended December 31, 2015 and 2014, the Company incurred $100,000 and $75,000, respectively, as consulting fees and expense reimbursements. As of December 31, 2015 and 2014, there was an unpaid balance of $154,638 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 year ended December 31, 2015 and 2014, the Company incurred $191,183 and $75,000, respectively, as consulting fees. As of December 31, 2015 and 2014, there was an unpaid balance of $191,013 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 year ended December 31, 2015 and 2014 the Company incurred $192,279 and $75,000, respectively, as consulting fees. As of December 31, 2015 and 2014, there was an unpaid balance of $137,045 and $45,196, 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 year ended December 31, 2015 and 2014 the Company incurred $25,000 and $65,625, respectively, as consulting fees. As of December 31, 2015 and 2014, there was an unpaid balance of $53,125 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.