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Related Party Transactions
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3 Months Ended |
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Aug. 31, 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 August 31, 2012, the Company owed the director $19,493 included in the accompanying consolidated financial statements as “indebtedness to related parties” as of August 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 August 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 August 31, 2012, the unpaid balance of the notes is $55,000. The Company has classified the balance as a short-term obligation as of August 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 Kenneth J. Van Ness, a director of the Company, as 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 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. |