NOTE 7. RELATED PARTIES
Niobe, the majority stockholder of the Company and the holder of the 2012 Secured Notes (defined in Note 9, below), is controlled by Arnold P. Kling, the Company’s president and director.
During the year ended May 31, 2012, the Company issued an aggregate of 450,000 options to John Doherty, one of our directors, and Kirk M. Warshaw, our chief financial officer and director.
The Company’s principal offices are located at 133 Summit Avenue, Suite 22, Summit, New Jersey which are owned by Kirk M. Warshaw, LLC (the “LLC”), an affiliated company of Kirk Warshaw, the Company’s chief financial officer. The Company occupies its principal offices on a month to month basis. On March 1, 2010, it began paying a monthly fee of $500 to the LLC for the use and occupancy, and administrative services, related to its principal offices.