Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
3 Months Ended
Mar. 31, 2014
Related Party Transactions  
Related Party Transactions

NOTE 3 - RELATED PARTY TRANSACTIONS

 

In prior years, Joseph Fiore, CEO of the Company, and Berkshire Capital, which is controlled by Mr. Fiore, paid expenses and made advances to the Company.  All expenses paid on behalf of the company have been recorded in the consolidated statements of operations for the period incurred.  At March 31, 2014 and December 31, 2013 $1,305,422 and $1,286,035, respectively of principle and accrued interest was due on this loan.

 

On September 14, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $125,000, carrying an interest rate of 6% A.P.R. At March 31, 2014 and December 31, 2013, $137,316 and $135,276, respectively of principle and accrued interest was due on this loan.

 

On July 17, 2007, the Company acquired 3,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $465,000, carrying an interest rate of 6% A.P.R.  On January 8, 2008, $375,156 was paid on this note.  At March 31, 2014 and December 31, 2013, $149,800 and $147,575, respectively of principle and accrued interest was due on this loan.

 

On August 22, 2007, the Company acquired 2,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $160,000, carrying an interest rate of 6% A.P.R.  At March 31, 2014 and December 31, 2013, $237,310 and $233,786, respectively of principle and accrued interest was due on this loan.

 

  On September 20, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $55,000, carrying an interest rate of 6% A.P.R.  At March 31, 2014 and December 31, 2013, $81,183 and $79,977, respectively of principle and accrued interest was due on this loan.

 

   On January 5, 2012, the Company acquired 3,500,000 shares of Plandai, Inc, from Berkshire Capital Management in exchange for a demand note in the amount of $1,575,000. The note has a five year term with principal and interest due January 5, 2017. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,786,525 and $1,762,900, respectively of principle and accrued interest was due on this loan.

 

  On February 1, 2012, the Company acquired 3,500,000 shares of Inscor, Inc. from Berkshire Capital Management in exchange for a demand note in the amount of $3,675,000. The note has a five year term with principal and interest due February 1, 2017. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $4,152,244 and $4,097,122, respectively of principle and accrued interest was due on this loan.

 

  On May 14, 2013, the Company acquired 8,000,000 shares of Nuvilex, Inc. from Berkshire Capital Management in exchange for a demand note in the amount of $1,420,000. The note has a five year term with principal and interest due May 14, 2018. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,494,871 and $1,473,570, respectively of principle and accrued interest was due on this loan.

 

  On May 21, 2013, the Company acquired 8,230,637 shares of Nuvilex, Inc. from Joseph Fiore in exchange for a demand note in the amount of $1,185,218. The note has a five year term with principal and interest due May 21, 2018. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,246,540 and $1,228,762, respectively, of principle and accrued interest was due on this loan.

 

Interest expense of $146,209 and $535,674 was capitalized during the quarter ended March 31, 2014 and the year ended December 31, 2013, respectively.

 

A summary of the above related party transactions is presented below.

 

Related Party   Date of loan   March 31, 2014   December 31, 2013
Joseph Fiore     May 21, 2013     $ 1,246,540     $ 1,228,762  
Berkshire Capital Management     May 14, 2013       1,494,871       1,473,570  
Berkshire Capital Management     February 1, 2012       4,152,244       4,097,122  
Berkshire Capital Management     January 5, 2012       1,786,525       1,762,900  
Joseph Fiore     2010 & 2011       1,305,422       1,286,035  
Berkshire Capital Management     September 14, 2007       137,316       135,276  
Berkshire Capital Management     July 17, 2007       149,800       147,575  
Berkshire Capital Management     August 22, 2007       237,310       233,786  
Berkshire Capital Management     September 20, 2007       81,183       79,977  
            $ 10,591,211     $ 10,445,003  
Less: Current Portion             1,911,028       1,882,648  
Long Term Portion           $ 8,680,183     $ 8,562,355  

 

During the year ended December 31, 2013, Joseph Fiore forgave $301,937 of debt originally loaned to two of the Company’s subsidiaries that are no longer operating. The amount was written off to additional paid in capital.