Note 14- Related Party Transactions
In September 2009 we and Argo entered into a Transition Services Agreement (the “Agreement”). Argo agreed to provide certain general and administrative services, including labor, technology, facilities and other services to us on an as needed basis in exchange for cash consideration. The Agreement was terminated on May 13, 2010 and, pursuant to the Asset Purchase Agreement, any and all advances and payments made by us to or on behalf of Argo and owing by Argo to us were to be repaid by Argo on or prior to May 13, 2011, with interest at ten (10%) percent per annum. At December 31, 2010, we had advanced a net of $172,012 to Argo, including accrued interest of $9,753. On January 17, 2011, Argo repaid the balance then outstanding in full.
We paid consulting fees of $10,000 and $30,000 during the years ended December 31, 2011 and 2010, respectively, to a consultant who was appointed to our board of directors in December 2010, and we reimbursed the director $9,920 and $10,461 in the years ended December 31, 2011 and 2010, respectively, for out-of pocket expenses incurred in connection with our business.
In March 2011, we entered into a Consulting/Services Agreement to facilitate the marketing and promotion of direct TV advertised products with an entity that is wholly owned by a stockholder who beneficially owns more than 5% of our common stock. For the year ended December 31, 2011 we did not receive any significant commissions under this agreement.