Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

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Related Party Transactions
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Note 4. Related Party Transactions

On April 3, 2009, the Company entered into an agreement with Viking Investments Group, LLC, a Delaware limited liability company (“Viking Delaware”) owned by Viking Investments Group, LLC, a company controlled and managed by the Company’s Chairman, Chief Executive Officer and President, Tom Simeo, incorporated under the laws of The Federation of St. Kitts and Nevis, (“Viking Nevis”), providing that effective August 15, 2008, Viking Delaware would pay for any services performed on behalf of the Company by third parties until such time that Viking Delaware (or Viking Nevis) is no longer the majority shareholder of the Company. On August 2, 2011, effective as of April 1, 2011, Viking Delaware agreed to advance and pay all third party costs for the Company as needed, but the Company had an obligation to reimburse Viking Delaware at a later stage upon demand from Viking Delaware. As of August 29, 2011, Viking Delaware’s rights and obligations were transferred to Viking Nevis.

 

For the year ended December 31, 2011, Viking Delaware (and its parent, Viking Nevis) assumed the rental, wages, professional service fee, and other office expenses in the aggregate amount of $769,378. For the year ended December 31, 2012, Viking Nevis assumed the rental, wages, professional service fee, and other office expenses of the Company in the aggregate amount of $46,850.

 

On June 29, 2011, and on August 29, 2011, Viking Investments, LLC, a company controlled and managed by the Company’s Chairman, Chief Executive Officer and President, Tom Simeo, incorporated under the laws of The Federation of St. Kitts and Nevis, (“Viking Nevis”) sold 100,000 and 466,813 shares respectively of China Wood, Inc., publicly listed in the United States with the ticker “CNWD”, (the “China Wood Shares”) owned by Viking Nevis, in exchange for 1,912,000 and 12,569,420 newly issued restricted shares of the Company respectively. By August 29, 2011, Viking Nevis completed the purchase of the China Wood Shares by having delivered a total of 566,813 shares of common stock in China Wood, Inc. to the Company.  The China Wood Shares were registered in a Form S-1 Registration Statement declared effective by the SEC on April 7, 2011. The China Wood Shares were subject to a “Leak-Out Provision” whereby only a certain amount of shares could be sold per month up and until the first anniversary of the effective day of the aforementioned registration statement (April 7, 2012).  

 

These investments were fully impaired as of December 31, 2011 and were repurchased on April 15, 2013. (See Note 5 and 11)

 

On November 16, 2012, Viking Nevis purchased 3,205,960 restricted shares of common stock of the Company for an aggregate purchase price of $158,921. The purchase price has been paid, and the shares were issued on December 27, 2012.

 

At December 31, 2012, the Company owed Tom Simeo $49,767 for accrued payroll, after paying him $30,229 as a portion of his 2012 salary of $135,000. During the fiscal year ending December 31, 2012, the Company also advanced Mr. Simeo $55,004 to cover Company expenses.

 

Amount due to Director:

 

Balance December 31, 2011   $ -  
         
Add: 2012 Accrued payroll     135,000  
Less 2012 Payments     (30,229)  
Less 2012 Advance to director     (55,004)  
         
Balance December 31, 2012   $ 49,767