Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

v2.4.1.9
Related Party Transactions
12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

Note 7 – Related Party Transactions

 

Related Party Sales and Accounts Receivable

 

The Company generates a significant portion of their revenue from related parties, companies owned by the majority shareholder of the Company. Total revenue generated from the related parties during the years ended December 31, 2014 and 2013 were $523,250 and $237,150 or 31% and 19% of total revenue, respectively. Total related party accounts receivable as of December 31, 2014 and 2013 related to these sales was approximately $83,339 and $77,909, or 79% and 79% of total net accounts receivable, respectively.

 

Related Party Shareholder Loan

 

The Company has a note with the sole shareholder of the Company. This note is unsecured, matures on December 31, 2016 and carries a 1% interest rate. Though this note is due during 2016, the Company makes periodic payments on the Note when excess cash is available.

 

The balance of the note at December 31, 2014 and 2013 was $756,337 and $938,118, respectively. The balance of the related accrued interest at December 31, 2014 and December 31, 2013 was $22,308 and $50,836, respectively. Interest expense for the year ended December 31, 2014 and 2013 was $10,610 and $9,519, respectively.

 

The aggregate annual maturities of the related party long-term debt are as follows:

 

Year Ending      
2014   $ -  
2015     -  
2016     756,337  
2017     -  
2018     -  
    $ 756,337