Annual report pursuant to Section 13 and 15(d)

INVESTMENT IN PARAGON WASTE SOLUTIONS LLC (Details Narrative)

v2.4.0.8
INVESTMENT IN PARAGON WASTE SOLUTIONS LLC (Details Narrative) (USD $)
12 Months Ended 38 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2013
Officer of the Company
Dec. 31, 2013
Shareholder of the Company
Dec. 31, 2010
Paragon Waste Solutions, LLC
Dec. 31, 2013
Paragon Waste Solutions, LLC
Jun. 30, 2012
Black Stone Management Services
Aug. 31, 2011
Black Stone Management Services
Dec. 31, 2010
Black Stone Management Services
Dec. 31, 2013
Black Stone Management Services
Sep. 30, 2013
Exclusive Use License and Joint Operations Agreement with Sterall Inc
Dec. 31, 2013
Exclusive Use License and Joint Operations Agreement with Sterall Inc
Business Acquisition [Line Items]                    
Membership units issued     1,000,000              
Membership units acquired     600,000       400,000      
Percentage ownership 5.00% 5.00% 54.00% 54.00%     26.00% 36.00%    
Percentage allocated to two individuals         10.00%          
Payment for funding of subsidiary       $ 1,341,300            
Stock issued for acquisition of intellectual property           100,000        
Stock issued for acquisition of intellectual property (shares)           100,000        
Description of business acquisition reason                   The License Agreement granted to Sterall the use of the Paragon Technology for an initial five year term for the State of Florida, renewable for two additional five year terms, for the treatment and/or destruction of any and all regulated medical waste from any sources. In order for Sterall to maintain its exclusive license for the State of Florida.
Initial fees paid                 200,000   First phase royalty fees payment                 500,000   Second phase royalty fees payment                 750,000   Third phase royalty fees payment                 750,000   License initiation fee                 300,000   Maximum payment of placement fee per unit                 207,000   Minimum payment of placement fee per unit                 $ 168,000   Description of Net operating profit allocation                   Commencing immediately royalty fees based on Sterall’s net operating profit (“NOP”) for the Initial Facility Fee and ongoing royalties shall be paid on the fifteenth of each month for the succeeding month’s revenue for Paragon’s specified allocation of NOP as set forth below except that effective January 1, 2014 Sterall shall pay the greater of i) a minimum of $7,500 or 2) Paragon’s effective NOP allocation.
  · Phase I Distribution- All NOP shall first be allocated and paid out 75% to Paragon and 25% to Sterall until the first $1,200,000 in distributions are made to the joint venture partners ($900,000 Paragon/$300,000 Sterall).

 

  · Phase II Distribution - Thereafter, NOP shall be allocated and paid out 25% to Paragon and 75% Sterall until the next $800,000 in distributions are made to the joint venture partners ($200,000 Paragon/$600,000 Sterall).

 

  · Phase III Distribution - Thereafter, all NOP shall be allocated and paid out 50%-50% to each joint venture partner for so long as Sterall’s Initial Facility operates and generates NOP.