Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
9 Months Ended
Sep. 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 nine months ended September 30, 2105 and 2014 was $472,080 and $405,350 or 35% and 33% of total revenue, respectively. Total revenue generated from the related parties during the three months ended September 30, 2015 and 2014 were $137,950 and $158,600 or 29% and 38% of total revenue, respectively. Total related party accounts receivable as of September 30, 2015 and 2014 related to these sales was approximately $103,630 and $66,650, or 48% and 54% 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 as of September 30, 2015 and December 31, 2014 was $704,547 and $756,337 respectively. The balance of the related accrued interest at September 30, 2015 and December 31, 2014 was $27,841 and $22,308, respectively. Related party interest expense for the nine months ended September 30, 2015 and 2014 was $5,533 and $6,494, respectively. Related party interest expense for the three months ended September 30, 2015 and 2014 was $1,761 and $1,966, respectively.

 

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

 

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

 

Expenses Paid by Related Party

 

Throughout the period ending September 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 $135,778. Total deposits on the landfill (see note 9) paid by Strategic totaled $225,000 through September 30, 2015. Strategic also incurred costs to build the Company’s investor relations website of $7,594, $4,704 which was paid and $3,250 which is an outstanding payable to the vendor as of September 30, 2015. Total cash outlays by Strategic were $365,482 through September 30, 2015. Through September 30, 2015, the Company and Strategic agreed to settle this amount for 365,482 of the Company’s common shares, respectively. 251,842 shares were issued as of September 30, 2015. The remaining 113,640 shares were issued subsequent to September 30, 2015 and thus were accounted for as stock subscribed.

 

Related Party Acquisitions (Subsequent to September 30, 2015)

 

Subsequent to September 30, 2015, the Company closed on the acquisition of Waste Recovery Enterprises, LLC (“WRE”), a related party acquisition, on October 15 2015 for $250,000 in cash and 2,750,000 shares of the Company’s restricted stock. The Company entered into a letter of intent to buy Gateway Rolloff Services, LP (“Gateway”) during October, 2015. The terms of the letter of intent for Gateway include a purchase price of $450,000 and a total of 2,400,000 shares of stock of National Waste Management Holdings, Inc. The acquisition is planned to close during November, 2015.