Quarterly report pursuant to Section 13 or 15(d)

Note 19 - Accrued salary, accrued retirement and incentive fee - related party

v3.19.2
Note 19 - Accrued salary, accrued retirement and incentive fee - related party
6 Months Ended
Jun. 30, 2019
Notes  
Note 19 - Accrued salary, accrued retirement and incentive fee - related party

Note 19 - Accrued salary, accrued retirement and incentive fee - related party

 

As of June 30, 2019 and December 31, 2018, the Company had an outstanding liability to its CEO as follows:

 

 

 

June 30,

 2019

 

December 31,

2018

Accrued salaries and benefits

$

814,238

$

802,775

Accrued retirement and other benefits

 

505,061

 

485,996

Offset by shareholder advance

 

(261,653)

 

(261,653)

 

$

1,057,646

$

1,027,118

 

As approved by resolution of the Board of Directors in 1998, the CEO will be paid an incentive fee and a bonus which are payable in installments at the CEO’s option. The incentive fee is 1% of the increase in market capitalization based on the bid price of the Company’s stock beyond the book value at confirmation of the bankruptcy, which was approximately $260,000. The bonus is 0.5% of the increase in market capitalization for each $1 increase in stock price up to a maximum of $8 per share (4%) based on the bid price of the stock beyond the book value at confirmation of the bankruptcy. For the three months ended June 30, 2019 and 2018, the incentive fee expense was $0 and $0, respectively. For the six months ended June 30, 2019 and 2018, the incentive fee expense was $0 and $0, respectively.