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Related Party Transactions
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9 Months Ended |
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Sep. 30, 2012
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| Notes to Financial Statements | |
| NOTE 13 - Related Party Transactions |
Prior to the reverse merger on November 2, 2010, Optimal Payments Corporation converted $570,534 of debt into $370,534 worth of Mobivity Inc common stock and $200,000 of prepaid services to be rendered by Mobivity. These services remain owed to Optimal Payments Corporation at December 31, 2011. A member of the Company's Board of Directors is currently President of Sterling Card Solutions, which has a minority ownership position in Optimal Payments Corporation. During the nine months ended September 30, 2012, the Company began work on two projects for Optimal Payments Corporation and recognized revenue of $124,538.
Hidden River Ventures I, LLC is an existing shareholder in the Company as a result of converting $229,000 of payables in exchange for 415,937 shares of the Company's common stock. On October 26, 2010, the Company entered into a consulting agreement with a related company under common control, Hidden River, LLC, pursuant to which Hidden River, LLC would lead the Company’s acquisition strategy. The consulting agreement calls for monthly payments of $11,000, along with periodic bonus payments associated with the success of the acquisition strategy, as well as options to purchase 700,000 shares granted on December 24, 2010 priced at $.32 per share. Of the options granted, 481,245 options were vested as of September 24, 2012. For the nine months ended September 30, 2012, Hidden River earned $99,000 in regards to the previously mentioned consulting services.
On July 16, 2012, the Company entered into a verbal agreement with Hidden River, LLC (the “Consultant”) to provide additional consulting services, at a rate of $10,000 per month, as a Vice President of Operations. In this role the Consultant would lead and manage the execution of day-to-day operations of the Company, including Sales, Marketing, Client Services and Administration in pursuit of its short and long term performance objectives.
During the year ended December 31, 2011, the company entered into an employment agreement with the primary owner and shareholder of Digimark LLC, holder of 519,540 common shares, to serve as Executive Vice President of Business Development. He was paid $90,000 as of September 30, 2012.
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