Related Party Transactions
|9 Months Ended|
Sep. 30, 2015
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 13 RELATED PARTY TRANSACTIONS
Short Term Debt - Related Parties
During the nine months ended September 30, 2015 and 2014, the Companys President advanced $0 and $50,000, respectively, to the Company and the Company repaid $0 and $55,000, respectively.
As of September 30, 2015 and December 31, 2014, the outstanding balance of short term debt related parties was $221,000.
The amounts accrue interest at 10% and are due on demand.
Interest expense incurred and accrued on Short Term Debt Related Parties was approximately $16,000 and $7,800 for the nine months ended September 30, 2015 and 2014, respectively.
Chief Operating Officer and the City of North Vernon
The Companys Chief Operating Officer is a relative of the mayor of North Vernon. The City of North Vernon loaned the Company $1,400,000 as described in Note 12. The terms of the loan were presented to and approved by the city council. The related party officer is an employee under the terms of an employment contract and his continued employment is based solely on performance. Management believes all compensation paid to the Chief Operating Officer is based on market value comparisons and is not impacted at all by the related party officers relationship with the mayor of the lender.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef