Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
9 Months Ended
Sep. 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. The advances bear interest at 6% per annum. At September 30, 2014 and December 31, 2013 $1,345,077 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 an unsecured demand note in the amount of $125,000, bearing interest at 6% per annum. At September 30, 2014 and December 31, 2013, $193,167 and $184,688, 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 an unsecured demand note in the amount of $465,000, bearing interest at 6% per annum. On January 8, 2008, $375,156 was paid on this note. At September 30, 2014 and December 31, 2013, $154,350 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 an unsecured demand note in the amount of $160,000, bearing interest at 6% per annum. At September 30, 2014 and December 31, 2013, $244,519 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 an unsecured demand note in the amount of $55,000, bearing interest at 6% per annum. On July 30, 2013, $49,411 was paid on this note. At September 30, 2014 and December 31, 2013, $31,969 and $30,565, 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 an unsecured 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% per annum. At September 30, 2014 and December 31, 2013, $1,833,775 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 an unsecured 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% per annum. At September 30, 2014 and December 31, 2013, $4,262,496 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 an unsecured 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% per annum. At September 30, 2014 and December 31, 2013, $1,537,471 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 an unsecured 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% per annum. At September 30, 2014 and December 31, 2013, $1,282,096 and $1,228,762, respectively, of principle and accrued interest was due on this loan.

 

Interest expense of $439,918 and $535,674 was added to the principal during the nine months ended September 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   September 30, 2014   December 31, 2013
Joseph Fiore     21-May-13     $ 1,282,096     $ 1,228,762  
Berkshire Capital Management     14-May-13       1,537,471       1,473,570  
Berkshire Capital Management     1-Feb-12       4,262,496       4,097,122  
Berkshire Capital Management     5-Jan-12       1,833,775       1,762,900  
Joseph Fiore     2010 & 2011       1,345,077       1,286,035  
Berkshire Capital Management     14-Sep-07       193,167       184,688  
Berkshire Capital Management     17-Jul-07       154,350       147,575  
Berkshire Capital Management     22-Aug-07       244,519       233,786  
Berkshire Capital Management     20-Sep-07       31,969       30,565  
              10,884,920       10,445,003  
Less: Current Portion             1,969,082       1,882,648  
Long Term Portion           $ 8,915,838     $ 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.