Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 10 – RELATED PARTY TRANSACTIONS

 

Notes payable, related parties

 

Notes payable, related parties and accrued interest due to certain related parties as of March 31, 2014 and December 31, 2013 are as follows:

 

    2014     2013  
                 
Note payable dated February 2004, bearing interest at 8% per annum, originally due January 2008; assigned to CEO by a third party in 2010; originally due on demand, in default at December 31, 2013 has been extended to December 31, 2014.   $ 97,000     $ 97,000  
                 
Accrued interest     41,800       39,900  
                 
    $ 138,800     $ 136,900  

 

We believe the stated interest rates on the related party notes payable represent reasonable market rates based on the note payable arrangements we have executed with third parties.

 

For the three months ended March 31, 2014 and 2013 we had revenues of $114,000 and $141,000, respectively, from a customer, Harley Dome, in which our CEO/President is a member of the Board of Directors of Armada Water Assets, Inc, the parent company of Harley Dome. Our CEO and Black Stone , in which Fortunato Villamagna is Chairman and a managing member and President of our subsidiary PWS, are minority shareholders of Armada Water Assets, Inc.

 

In September 2013, PWS entered into an Exclusive Use License and Joint Operations Agreement (“License Agreement”) with Sterall Inc. (“Sterall”). Black Stone in which Fortunato Villamagna is Chairman and a managing member and President of our subsidiary PWS, is a minority shareholder of Sterall.