Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
3 Months Ended
Mar. 31, 2015
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 three months ended March 31, 2015 and 2014 were $100,350 and $111,600 or 26% and 28% of total revenue, respectively. Total related party accounts receivable as of March 31, 2015 and December 31, 2014 related to these sales was approximately $33,300 and $37,033, or 43% and 36% 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 March 31, 2015 and December 31, 2014 was $756,337 and $756,337 respectively. The balance of the related accrued interest at March 31, 2015 and December 31, 2014 was $24,199 and $22,308, respectively. Related party interest expense for the three months ended March 31, 2015 and 2014 was $1,891 and $2,337, respectively.

 

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

 

Year Ending      
2015   $ -  
2016     756,337  
    $ 756,337