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9. Related Party Transactions
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12 Months Ended |
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Dec. 31, 2011
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| Notes To Financial Statements | |
| Related Party Transactions Disclosure [Text Block] |
9. RELATED
PARTY TRANSACTIONS
On
December 17, 2010, George Broady, a director of the Company and
owner of more than 5% of its outstanding common stock, advanced
$4,000 to settle a claim against the Company. Mr. Broady
advanced an additional $2,500 on January 13, 2011, and $30,000 on
March 14, 2011 to settle certain other claims against the
Company. The aggregate amount of these advances totaling
$36,500 was repaid on August 8, 2011.
Additionally,
Mr. Broady advanced $100,000 to the Company on February 28, 2011
and $100,000 on March 14, 2011. The Company agreed to pay
Mr. Broady interest of 9% per annum on the aggregate amount of
the advances. The Company repaid Mr. Broady in full, plus
accumulated interest, during the third and fourth quarters of
2011.
The
Company is considering entering into a Royalty Agreement and
License Agreement with Broady Health Sciences, L.L.C.
(“BHS”) regarding the manufacture and sale of a new
product called
Restor™.
BHS has patents pending on that product. Mr. Broady is a
member of BHS, a Texas limited liability company. During
2011, BHS permitted the Company to manufacture (or have
manufactured), market and sell the
Restor™
product. To continue selling
Restor™
and obtain certain exclusive rights outside of the United States,
BHS has requested that the Company reimburse up to $25,000 in
expenses incurred in 2011and pay a royalty of 2.5% of sales
revenues for 2011 and subsequent years. The Company is
considering that proposal and discussing the terms of a
definitive agreement. At a royalty of 2.5% of net sales,
the Company calculates that royalties for 2011 would be less than
$12,000. Royalties for 2012 would depend on sales of the
Restor™
product in 2012.
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