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6. RELATED PARTIES
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Dec. 31, 2013
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| RELATED PARTIES |
During the year ended December 31, 2013, the Company made a payment of $2,001 for rent expense to MonaCo Development, an entity owned 100% by Michael J. Mona, Jr, the Company’s President and Chief Executive Officer. Additionally, the Company made a payment of $7,500 to Mr. Mona for services provided prior to the consummation of an employment agreement between the Company and Mr. Mona.
The Company paid a total of $30,000 to Mr. Stuart Titus, a stockholder of the Company, for consulting services provided. As of December 31, 2013, Mr. Titus is no longer providing services to the Company.
Bart Mackay, a Board Director of the Company owns 100% of Roen Ventures, LLC through two wholly-owned limited liability companies, Mai Dun, Ltd., and Mercia Holdings, LLC. Further, Mr. Mackay received $2,000 in fees paid for services provided to the Company.
As of December 31, 2013, the Company owes Roen Ventures, LLC a total of $6,092,069 under a Promissory Note (Note 7). Under the terms of the note, Roen Ventures, LLC has the option to convert the balance owed, up to $6,000,000 into common shares of the Company at a conversion price of $0.60 per share. In addition, the Company owed Roen $161,583 in accrued interest under the note at December 31, 2013.
Michael J. Mona, Jr., the President and Chief Executive Officer of the Company previously held a 50% interest in Roen Ventures, LLC which he subsequently sold to Mr. Mackay during 2013. Mr. Mona is the current manager of Roen Ventures, LLC.
For the year ended December 31, 2013, the Company recognized sales to the following related parties which represented 100% of total sales recognized:
In addition, 100% of the Company’s accounts receivable totalling $1,740,502 are from these parties.
During the year the Company paid a total of $1,953,690 to a stockholder of the Company who is a supplier of hemp oil and hemp to the Company.
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