Lorraine Yarde, our CEO, is the co-founder and minority shareholder with Axius Consulting Group, Inc. (“Axius”). Mr. Mark Basile, our former director, is also a co-founder and majority shareholder of Axius. Effective July 1, 2010, we entered into a consulting agreement with Axius. We engaged Axius to provide services in connection with our efforts to seek out business relationships and financing to grow our business. We agreed to pay Axius a retainer of $20,000 per month for a 12 month consecutive period. We renewed the yearlong agreement on July 1, 2011 and again on July 1, 2012. The consulting agreement was not renewed on July 1, 2013. Axius has at its sole discretion, to have the option to take payment of the accrued fee in cash or as common stock of the business, at a 50% discount to the current market value of the common stock. Certain payments made directly on behalf of the principals of Axius, in the form of health insurance payments of $32,977 in 2013. Balances included in accounts payable to Axius totaled $176,701 for both the three months ended March 31, 2014, and the year ended December 31, 2013. The value of Mr. Basile’s interest in the Axius Consulting Agreement was $132,526 and Ms. Yarde’s interest was $44,175 for both the three months ended March 31, 2014, and the year ended December 31, 2013.
My opinions are my own, and based on the knowledge I have acquired over the years of owning and operating businesses on a daily basis. They are my analysis and should not be interpreted as investment advice. Basically, just an analysis. NO more, No less.
