Quarterly report pursuant to Section 13 or 15(d)

NOTE 5 - RELATED PARTY TRANSACTIONS

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NOTE 5 - RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
NOTE 5 - RELATED PARTY TRANSACTIONS

NOTE 5 - RELATED PARTY TRANSACTIONS

 

During 2011 and 2010, Joseph Fiore, C.E.O. 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. As of September 30, 2012 and December 31, 2011, $1,495,271 and $1,442,889 (including accrued interest at 6%) in advances was due to these related parties.

 

On August 8, 2003, the Board resolved to enter into an agreement with Berkshire Capital Management Co. Inc., a related party, for the purpose of utilizing the Company’s tax loss carry forward to sell Berkshire’s acquired free trading stock in other public companies. As of September 30, 2012 and December 31, 2011, related party accounts payable include $0 and $8,784, respectively, due to Berkshire Capital.

 

On May 16, 2007, the Company acquired 3,000,000 shares of Sustainable Power Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $210,000, carrying an interest rate of 6% A.P.R. During the year ended December 31, 2010, the Company paid $210,000 towards this loan. At September 30, 2012 and December 31, 2011, $24,405 and $46,545, respectively 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 September 30, 2012 and December 31, 2011, $171,598 and $164,066 was due on this loan, respectively.

 

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 September 30, 2012 and December 31, 2011, $137,801 and $131,096 was due on this loan, respectively.

 

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 September 30, 2012 and December 31, 2011, $218,302 and $207,681 was due on this loan, respectively.

 

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 September 30, 2012 and December 31, 2011, $74,309 and $71,047, respectively, was due on this loan.

 

On January 11, 2008, the Company acquired 1,000,000 shares of Sustainable Power Corp from Berkshire Capital Management in exchange for a demand note in the amount of $47,000, carrying an interest rate of 6% A.P.R. On April 30, 2012 and May 15, 2012 the Company paid back $30,000 and $20,000, respectively. During the third quarter the remaining balance was paid. At September 30, 2012 and December 31, 2011, $0 and $59,611, respectively, was due on this loan.

 

On February 29, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $126,000, carrying an interest rate of 6% A.P.R. At September 30, 2012 and December 31, 2011, $166,589 and $158,494, respectively, was due on this loan.

 

On April 24, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $71,000, carrying an interest rate of 6% A.P.R. At September 30, 2012 and December 31, 2011, $92,574 and $88,510, respectively, was due on this loan.

 

On April 24, 2008, the Company acquired 862,500 shares of EFoodSafety.Com from Berkshire Capital Management in exchange for a demand note in the amount of $163,875, carrying an interest rate of 6% A.P.R. On March 26, 2010, $30,000 was paid on this note. On March 31, 2012, $61,464 was paid on this note. During the quarter ended September 30, 2012 $86,216 was paid on this note. At September 30, 2012 and December 31, 2011, $28,414 and $170,970, respectively, was due on this loan.

 

On July 1, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $63,000, carrying an interest rate of 6% A.P.R. At September 30, 2012 and December 31, 2011, $81,242 and $77,676, respectively, was due on this loan.

 

On November 18, 2009, the Company acquired 5,000,000 share of Nuvilex, Inc. from Berkshire Capital Management in exchange for a note payable in the amount of $150,000. The note is due in three years and carries an interest rate of 6% A.P.R. During the 4th quarter of 2011, this note was paid in full.

 

On October 19, 2010, the Company acquired 171,400 shares of Diamond Ranch Foods from Berkshire Capital Management in exchange for a note payable in the amount of $50,000. The market value of the shares on October 19, 2010 was $1.05 per share, for a total value of $179,970. As part of this transaction, the Company recorded contributed capital of $129,970, which was the difference in the value of the shares and note payable. The note is due in three years and carries an interest rate of 6% A.P.R. During the 4th quarter of 2011, this note was paid in full.

 

On May 17, 2011, the Company acquired 3,000,000 shares of Nuvilex, Inc. from Berkshire Capital Management in exchange for a note payable in the amount of $10,000. The market value of the shares on May 17, 2011 was $0.07 per share, for a total value of $210,000. As part of this transaction, the Company recorded contributed capital of $200,000, which was the difference in the value of the shares and the note payable. The note is due on demand and carries an interest rate of 6% A.P.R. On March 31, 2012, this note was paid in full. At September 30, 2012 and December 31, 2011, $0 and $10,379, respectively, was due on this loan.

 

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

 

Related Party Date of loan   September 30, 2012   December 31, 2011
Joseph Fiore 2010 & 2011 $ 1,495,271 $ 1,442,889
Berkshire Capital Management May 16, 2007   24,405   46,545
Berkshire Capital Management September 14, 2007   171,598   164,066
Berkshire Capital Management July 17, 2007   137,801   131,096
Berkshire Capital Management August 22, 2007   218,302   207,681
Berkshire Capital Management September 20, 2007   74,309   71,047
Berkshire Capital Management January 11, 2008   0   59,611
Berkshire Capital Management February 29, 2008   166,589   158,494
Berkshire Capital Management April 24, 2008   92,574   88,510
Berkshire Capital Management April 24, 2008   28,414   170,970
Berkshire Capital Management July 1, 2008   81,242   77,676
Berkshire Capital Management November 18, 2009   -     -  
Berkshire Capital Management October 19, 2010   -     -  
Berkshire Capital Management May 17, 2011   -     10,379
    $ 2,490,505 $ 2,628,964