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Related Party Transactions
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12 Months Ended |
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May 31, 2012
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
10 - Related Party Transactions Prior to 2011, a director provided legal services to the Company for several years. As of May 31, 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 May 31, 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 May 31, 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 May 31, 2012, the balance in the notes is $55,000. The Company has classified the balance as short-term obligation as of May 31, 2012, as the Company’s intention is to pay the note completely in the next twelve months. The Company uses on an at-will basis a portion of a building owned by an affiliate of Kenneth J. Van Ness, our President and Chief Executive Officer, our principal offices that are located at 110 Crenshaw Lake Road, Lutz, Florida 33548. The Company uses approximately 1,600 square feet on a month-to-month basis at a rent of $1,650 per month, plus sales tax and utility reimbursement.
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. |