Annual report pursuant to Section 13 and 15(d)

8. Transactions with Related Persons

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8. Transactions with Related Persons
12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
8. Transactions with Related Persons

 

From time to time Mr. Richard T. Schumacher, the Company’s President and CEO, makes loans to the Company to provide the Company with operating cash. The balance of these loans at December 31, 2013 was $25,182 and is recorded as related party debt in the accompanying consolidated balance sheet as of December 31, 2013.

 

On February 6, 2013, Mr. Schumacher invested $25,200 in our Series J Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 63 shares of convertible Preferred Stock (convertible into 63,000 shares of Common Stock) and a Warrant to purchase 63,000 shares of Common Stock at an exercise price of $0..40 per share.

 

On February 6, 2013, Mr. Jeffrey Peterson, chairman of the Company’s Board of Directors, invested $25,508 of existing loans and interest and $7,292 in board of director fees in our Series J Private Placement of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 82 shares of convertible Preferred Stock (convertible into 82,000 shares of Common Stock) and a Warrant to purchase 82,000 shares of Common Stock at an exercise price of $0.40 per share.

 

On February 6, 2013, Mr. Vito Mangiardi, member of the Company’s Board of Directors, invested $25,000 in cash and $4,167 in board of director fees  in our Series J Private Placement of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 73 shares of convertible Preferred Stock (convertible into 73,000 shares of Common Stock) and a Warrant to purchase 73,000 shares of Common Stock at an exercise price of $0.40 per share.

 

On February 6, 2013, Mr. Kevin Pollack member of the Company’s Board of Directors, invested $15,000 in cash, $25,233 in existing loans and $4,167 in board of directors fees in our Series J Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 111 shares of convertible Preferred Stock (convertible into 111,000 shares of Common Stock) and a Warrant to purchase 111,000 shares of Common Stock at an exercise price of $0.40 per share.

 

On February 6, 2013, Dr. Mickey Urdea member of the Company’s Board of Directors, invested $22,500 in board of director fees, in our Series J Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 57 shares of convertible Preferred Stock (convertible into 57,000 shares of Common Stock) and a Warrant to purchase 57,000 shares of Common Stock at an exercise price of $0.40 per share.

 

 On December 12, 2013, Mr. Schumacher invested $30,335 in our Series K Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 122 shares of convertible Preferred Stock (convertible into 122,000 shares of Common Stock) and a Warrant to purchase 61,000 shares of Common Stock at an exercise price of $0.3125 per share.

 

On December 12, 2013, Mr. Jeffrey Peterson, invested $25,875 in our Series K Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 103 shares of convertible Preferred Stock (convertible into 103,000 shares of Common Stock) and a Warrant to purchase 51,500 shares of Common Stock at an exercise price of $0..3125 per share.

 

On December 12, 2013, Mr. Vito Mangiardi, invested $22,500 in our Series K Offering of Convertible Preferred Stock and warrants to purchase shares of Comon Stock, for 90 shares of convertible Preferred Stock (convertible into 90,000 shares of Common Stock) and a Warrant to purchase 45,000 shares of Common Stock at an exercise price of $0.3125 per share.

 

On December 12, 2013, Mr. Kevin Pollack, invested $22,500 in our Series K Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 90 shares of convertible Preferred Stock (convertible into 90,000 shares of Common Stock) and a Warrant to purchase 45,000 shares of Common Stock at an exercise price of $0.3125 per share.

 

On December 12, 2013, Dr. Mickey Urdea, invested $32,500 in our Series K Offering of Convertible Preferred Stock and warrants to purchase shares of Common Stock, for 130 shares of convertible Preferred Stock (convertible into 130,000 shares of Common Stock) and a Warrant to purchase 65,000 shares of Common Stock at an exercise price of $0.3125 per share.