Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
6 Months Ended
Jun. 30, 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 six months ended June 30, 2015 and 2014 was $224,485 and $312,224 or 26% and 38% of total revenue, respectively. Total revenue generated from the related parties during the three months ended June 30, 2015 and 2014 were $124,135 and $166,250 or 26% and 39% of total revenue, respectively. Total related party accounts receivable as of June 30, 2015 and 2014 related to these sales was approximately $97,465 and $66,585, or 51% and 56% 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 June 30, 2015 and December 31, 2014 was $704,547 and $756,337 respectively. The balance of the related accrued interest at June 30, 2015 and December 31, 2014 was $26,080 and $22,308, respectively. Related party interest expense for the six and three months ended June 30, 2015 and 2014 was $3,772, $1,881, $4,528 and $2,191, respectively.

 

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

 

Year Ending      
2015   $ -  
2016     704,547  
    $ 704,547  

 

Workers’ Compensation

 

The Company pays for workers compensation insurance for a related entity and is then reimbursed by the related party after payment is made. Total costs incurred on behalf of the related party for the six months ended June 30, 2015 were $13,533. The related party owed the Company $7,286 as of June 30, 2015 related to workers compensation insurance paid on the related parties’ behalf.

 

Expenses Paid by Related Party

 

Throughout the period ending June 30, 2015, Strategic Capital Markets (“Strategic”), a related party, paid for expenditures of the Company as well as deposits on a landfill acquisition on behalf of the Company. These expenditures primarily related to professional fees incurred for compliance related to being a public company as well as marketing the Company’s investment strategy. Total expenses incurred for these services were $97,138. Total deposits on the landfill (see note 9) paid by Strategic totaled $150,000 through June 30, 2015. Strategic also incurred costs to build the Company’s investor relations website of $7,594, $4,704 of which was paid and $3,250 which is an outstanding payable to the vendor as of June 30, 2015. Total cash outlays by Strategic were $251,842 through June 30, 2015. During June 2015, the Company and Strategic agreed to settle this amount for 251,842 of the Company’s common shares. The shares were issued subsequent to June 30, 2015 and thus were not accounted for as stock subscribed as of June 30, 2015.