Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v2.4.0.8
Related Party Transactions
3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions
12.        Related Party Transactions
 
On March 26, 2009, the Company entered into a $50,000 revolving credit promissory note (the “Revolver”) with Vector Group Ltd. (“Vector”), a principal stockholder of the Company. On January 26, 2011, the Company and Vector entered into an amendment to the Revolver increasing the amount that the Company may borrow from $50,000 to $100,000. The loan bears interest at 11% per annum and was due on December 31, 2013. During January 2014, the Revolver was extended from December 31, 2013 to June 30, 2015. As of March 31, 2014 and December 31, 2013, the balance due to Vector amounted to $73,500. As of March 31, 2014 and December 31, 2013, accrued interest related to the Revolver amounted to $30,657 and $28,636, respectively, and is included in accrued interest, related party on the accompanying condensed consolidated balance sheets. Interest expense for other related party notes payable amounted to $2,021 and $2,021 for the three months ended March 31, 2014 and 2013, respectively.
 
ConGlobal Industries, Inc. is a minority stockholder of the Company and provides containers and labor on domestic projects.  The Company recognized Cost of Goods Sold of $186,012 and $354,427, for services ConGlobal Industries, Inc. rendered during the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and December 31, 2013, $102,850 and $176,929, respectively, of such expenses are included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.
 
The Lawrence Group is a minority stockholder of the Company and is a building design, development and project delivery firm. The Company recognized Cost of Goods Sold of $4,760 and $25,337 for services The Lawrence Group rendered during the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and December 31, 2013, $32,389 and $27,629, respectively, of expenses were included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.
 
An affiliated accounting firm of the Company’s Chief Financial Officer provided accounting and consulting services to the Company. The Company recognized General and Administrative expenses in the amount of $10,000 and $13,500 for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and December 31, 2013, $26,050 and $36,050, respectively, of expenses were included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.
 
The Company has accrued certain reimbursable expenses of owners of the Company. Such expenses amounted to $1,376 and $2,779 as of March 31, 2014 and December 31, 2013, respectively, and are included in related party accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.