RELATED PARTY TRANSACTIONS |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2015 | |||||
| Related Party Transactions [Abstract] | |||||
| Related Party Transactions Disclosure [Text Block] |
Assets Accounts receivable – related parties of $333,911 and $265,111 at December 31, 2015 and 2014, respectively, represents the net realizable value of advances made to related, but independent, entities under common management. See Note 8 – Investments and Fair Value of Financial Instruments, for a discussion of the Company’s investment in warrants of a related, but independent, entity. Liabilities The CEO and Chairman of the Company (the “CEO”) periodically advanced funds to the Company and he was repaid when the Company was able to do so. During 2014, the outstanding loan principal and related accrued interest of $331,019 and $60,983, respectively, were repaid in full. Liabilities, continued Additionally, in 2011 and 2012 the CEO invested a total $800,000 in the Company’s offering of convertible promissory notes on the same terms as other investors, earning a 10% interest rate. During 2014, principal and accrued interest of $373,958 and $207,327 was repaid in cash, and the remaining principal of $426,042 and the related accrued interest of $37,048 were converted into 231,545 shares of Series A Preferred. Revenues For the years ended December 31, 2015 and 2014, CAP recorded $315,102 and $0 of private equity and venture capital fees arising from private placement transactions on behalf of a related entity under common management. Of the 2015 amounts, $251,556 represents cash fees and $63,546 represents fees in the form of warrants, which were recorded at fair value as of the grant date using the Black- Scholes option pricing model. Expense Sharing On April 1, 2010, the Company entered into an agreement with a related entity, of which AWLD’s CEO is Chairman and Chief Executive Officer, and AWLD’s CFO is an executive officer, to share expenses such as office space, support staff and other operating expenses. The agreement was amended on January 1, 2015 to update for current use of personnel, office space, professional services and material. General and administrative expenses were reduced by $126,766 and $172,796 during the years ended December 31, 2015 and 2014, respectively as a result of the agreement. The entity owed $177,755 and $96,354, respectively, as of December 31, 2015 and 2014, under such and similar prior agreements. The Company has an expense sharing agreement with a related entity to share expenses such as office space and other clerical services. The owners of more than 5% of that entity include (i) AWLD’s chairman, and (ii) a more than 5% owner of AWLD. General and administrative expenses were reduced by $15,960 and $15,960 during the years ended December 31, 2015 and 2014, respectively as a result of the agreement. The entity owed $380,472 and $389,512 to the Company under the expense sharing agreement as of December 31, 2015 and 2014, respectively, of which $376,000 and $289,000, respectively, is deemed unrecoverable and written off. Other Relationships
An investor and a greater than 5% stockholder of the Company is affiliated with the Company that imported wines for AWE to the United States through December 31, 2015.
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