Annual report pursuant to Section 13 and 15(d)

Accrued Payroll and Payroll Taxes

v2.4.0.6
Accrued Payroll and Payroll Taxes
12 Months Ended
Dec. 31, 2011
Accrued Payroll and Payroll Taxes  
Accrued Payroll and Payroll Taxes

Note 6 – Accrued Payroll and Payroll Taxes

 

A significant portion of accrued payroll and payroll taxes relates to unpaid compensation for officers and directors that are no longer affiliated with the Company.  Accrued payroll taxes will become due upon payment of the related accrued compensation.

 

Accrued payroll and payroll taxes are composed of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2011

 

 

2010

 

 

 

 

 

 

 

 

Accrued payroll, vacation, and related payroll  taxes

 

 

 

 

 

 

  for current officers

 

$

965,946

 

 

$

1,012,176

 

Former Chief Executive Officer, resigned 2007

 

 

-

 

 

 

570,949

 

Other former officers and directors

 

 

77,750

 

 

 

77,750

 

Accrued payroll taxes on accrued compensation to

 

 

 

 

 

 

 

 

  former officers and directors

 

 

3,067

 

 

 

25,590

 

 

 

 

 

 

 

 

 

 

Accrued payroll and payroll taxes

 

$

1,046,763

 

 

$

1,686,465

 

 

 

On August 31, 2007, the Company entered into a Release and Settlement Agreement with Judy Robinett, the Company’s then-current Chief Executive Officer.  Under the agreement, Ms. Robinett agreed to, among other things, assist the Company in the sale of its legacy assets and complete the preparation and filing of the delinquent reports to the Securities and Exchange Commission.  Under the agreement, Ms. Robinett agreed to (i) forgive her potential right to receive $1,851,805 in accrued and unpaid compensation, un-accrued and pro-rata bonuses, and severance pay and (ii) the cancellation of stock options to purchase 14,000,000 shares of common stock at an exercise price of $0.02 per share.  In consideration for her services, the forgiveness of the foregoing cash payments, the cancellation of the stock options, and settlement of other issues, the Company agreed, among other things, to pay Ms. Robinett $500,000 upon the receipt of the cash payment under the agreement to sell the SaveCream Assets to Eucodis Pharmaceuticals Forschungs und Entwicklungs GmbH (Eucodis).  Pursuant to this agreement, Ms. Robinett resigned on December 21, 2007.  Despite the Company’s efforts, the sale to Eucodis was never completed and Eucodis has since ceased operations.  Accordingly, the conditions precedent to make the $500,000 payment from the Eucodis proceeds described above has not been fulfilled, i.e., the Company’s sale of the SaveCream Assets to Eucodis did not occur.  As such the Company does not believe that Ms. Robinett is  entitled to this payment and has written off all accruals related to Ms. Robinett.  Furthermore, the Company subsequently sold the SaveCream Assets to an unaffiliated third party on November 16, 2009.