Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

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Related Party Transactions
9 Months Ended
Sep. 30, 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 nine months ended September 30, 2014 and 2013 were $405,350 and $132,950 or 33% and 15% of total revenue, respectively. Total revenue generated from related parties during the three months ended September 30, 2014 and 2013 were $158,600 and $85,900 or 38% and 26% of total revenue, respectively. Total related party accounts receivable as of September 30, 2014 and 2013 related to these sales was approximately $66,650 and $40,050, or 54% and 53% 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 September 30, 2014 and December 31, 2013 was $761,337 and $938,118, respectively. The balance of the related accrued interest at September 30, 2014 and December 31, 2013 was $57,330 and $50,836, respectively. Interest expense for the nine months ended September 30, 2014 and 2013 was $6,494 and $8,383, respectively. Interest expense for the three months ended September 30, 2014 and 2013 was $1,966 and $2,511, respectively.

 

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

 

  Year Ending          
  2014     $ -  
  2015       -  
  2016       761,337  
  2017       -  
  2018       -  
        $ 761,337