Related Party Transactions
|3 Months Ended|
Mar. 31, 2016
|Related Party Transactions [Abstract]|
|Related Party Transactions||
Note 11 – Related Party Transactions
For the purposes of these notes to consolidated financial statements, parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.
Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and amounts as transactions between unrelated parties. Clyde A. Biston, the chairman of board of directors and former CEO of the Company, owns a majority of our shares, meaning he can exert significant influence over corporate decisions and strategy. Related party transactions for the period include the following:
The Company is headquartered at 39646 Fig Street, Crystal Springs, Florida, where it currently occupies 6,000 square feet of office space as well as 6,000 square feet for a mechanic shop and a 12,000 square foot warehouse. The facilities are owned by our President and Chairman of the Board, Clyde A. Biston. Effective as of January 1, 2017, the Company ceased to pay monthly rent to Mr. Biston. The Company is instead responsible for all property taxes, sales tax, and maintenance costs associated with 39646 Fig Street. The Company estimates these expenses will be $5,500 per month.
The Company also leases satellite offices in Davie and Ft. Walton Beach, Florida from third parties. Monthly rent for these facilities for the three months ended March 31, 2017 was $15,867 and $9,840 respectively ($15,367 and $9,555 respectively for the period March 31, 2016).
We believe our facilities are adequate for their intended purposes and have capacities adequate for our current and anticipated needs.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef