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Related Party Transactions
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9 Months Ended |
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Feb. 29, 2012
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
8 - Related Party Transactions Prior to 2011, a director provided legal services to the Company for several years. As of February 29, 2012 the Company still owed the director $19,493 and it is included in the accompanying consolidated financial statements as "indebtedness to related parties" as of February 29, 2012. The amount has been classified as short-term, as the Company's intention is to pay the note completely in the next twelve months. As of February 29, 2012 the note is past due.
In May and July 2007, the Company issued $150,000 in promissory notes with a stated interest rate of 14% to a director of the Company. These notes are currently past due. As of February 29, 2012, the balance in the notes is $55,000. The Company has classified the balance as short-term obligation as of February 29, 2012, as the Company's intention is to pay the note completely in the next twelve months. We use on a month-to-month basis a portion of a building owned by Kenneth J. Van Ness, our President, Chief Executive Officer, and Chairman of the Board of Directors, our principal offices that are located at 110 Crenshaw Lake Road, Lutz, Florida 33548. We use approximately 1,600 square feet on a month-to-month basis at a cost of $1,650 per month. The above terms and amounts are not necessarily indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent parties. |