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Note 12: Related Party Transactions
We lease our offices from a party that is related to our CEO. Effective September 1, 2010 the lease was renegotiated with the landlord, for a period of two years with a monthly rental payment of $10,359, (see Note 9).
We agreed to pay the legal expenses incurred by our CEO’s attorneys pertaining to its defense in the Sherron litigation, (see Note 9). Total fees charged to expense were $5,376 and $25,050 for the nine months ended September 30, 2011 and 2010, respectively.
We have a note receivable from a related party totaling $385,823 and $420,450 at September 30, 2011 and December 31, 2011, respectively, (see Note 3).
We had a note payable to a related party totaling $0 and $107,850 at September 30, 2011 and December 31, 2010, respectively. Additionally there was accrued interest owed to the related party totaling $0 and $25,973 at September 30, 2011 and December 31, 2010 respectively. The obligation was paid in full in July 2011, (see Note 8).
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