Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
6 Months Ended
Jun. 30, 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 June 30, 2014 and December 31, 2013 $1,325,101 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. AtJune 30, 2014 and December 31, 2013, $139,386 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 June 30, 2014 and December 31, 2013, $152,058and $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 June 30, 2014 and December 31, 2013, $240,888 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 June 30, 2014 and December 31, 2013, $82,407 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 principle and interest due January 5, 2017. The interest rate is 6% A.P.R. At June 30, 2014 and December 31, 2013, $1,810,150 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 principle and interest due February 1, 2017. The interest rate is 6% A.P.R. At June 30, 2014 and December 31, 2013, $4,207,372and $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 principle and interest due May 14, 2018. The interest rate is 6% A.P.R. At June 30, 2014 and December 31, 2013, $1,516,171 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 principle and interest due May 21, 2018. The interest rate is 6% A.P.R. At June 30, 2014 and December 31, 2013, $1,264,316 and $1,228,762, respectively, of principle and accrued interest was due on this loan.

 

Interest expense of $292,846 and $535,674 was capitalized during the six months ended June 30, 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   June 30, 2014   December 31, 2013
Joseph Fiore   May 21, 2013     $ 1,264,316     $ 1,228,762  
Berkshire Capital Management   May 14, 2013       1,516,171       1,473,570  
Berkshire Capital Management   February 1, 2012       4,207,372       4,097,122  
Berkshire Capital Management   January 5, 2012       1,810,150       1,762,900  
Joseph Fiore   2010 & 2011       1,325,101       1,286,035  
Berkshire Capital Management   September 14, 2007       139,386       135,276  
Berkshire Capital Management   July 17, 2007       152,058       147,575  
Berkshire Capital Management   August 22, 2007       240,888       233,786  
Berkshire Capital Management   September 20, 2007       82,407       79,977  
          $ 10,737,851     $ 10,445,003  
Less: Current Portion           1,939,838       1,882,648  
Long Term Portion         $ 8,798,011     $ 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.