Note 8 - Related Party Transactions

6 Months Ended

Jun. 30, 2013

Note 8 – Related Party Transactions

Related parties include (i) MAC, the owner of 49% equity interest in Amber, (ii) John Jurasin, the Company’s CEO and formerly the sole stockholder of JOG, (iii) JTBOF, David R. Strawn, and David M. Klausmeyer, the Company’s stockholders, and (iv) Robert M. Gray, the Company’s director and former employee, and Timothy N. McCauley, the Company’s former officer. Related party balances as of June 30, 2013 and December 31, 2012 are as follows:

	June 30,		December 31,
	2013		2012

Due from related parties:
MAC	$	358,232	$	358,232
John Jurasin		3,716		6,033
Other		2,012		2,012
	$	363,960	$	366,277

Due to related parties:
John Jurasin	$	867,546	$	839,976
Gray		50,606		50,606
Klausmeyer		12,193		12,193
Strawn		12,193		12,193
	$	942,538	$	914,968

MAC

Amber is partially owned by MAC, an affiliate of the Company’s lender, MBL, and Radiant uses the proportionate consolidation method to consolidate Amber. JOG, Radiant’s wholly owned subsidiary, pays for goods and services on behalf of Amber and passes those charges on to Amber through intercompany billings. Periodically, Amber will reimburse JOG for these expenses, or potentially pays for goods and services on behalf of JOG. These transactions are recorded as a due to/from Amber in JOG’s records and as a due to/from JOG in Amber’s records. Due to the fact that Radiant only consolidates its proportionate share of balance sheet and income statement amounts, the portion of the due from Amber related to the other interest owner does not eliminate and is carried as a due from Amber until the balance is settled through a cash payment. Due from related party was $358,232 as of June 30, 2013 and December 31, 2012.

John Jurasin

Effective March 2010, the Company assigned certain legacy overriding royalty interests (“ORRI”) in various projects, including the Baldwin AMI, the Coral, Ruby and Diamond Project, the Aquamarine Project, and the Ensminger Project to a related party entity owned by John M. Jurasin. The Company retained its working interests in these projects. Additionally, the Company assigned its working interest in a project, Charenton, to the related party entity. We did not receive any proceeds for the conveyances and the interests assigned had a historical cost basis of $0.

During the years ended December 31, 2011 and 2012 John Jurasin advanced the Company various amounts in order to pay operating expenses, with no formal repayment terms. The total balance due on these advances was $174,248 and $146,678 as of June 30, 2013 and December 31, 2012, respectively.

Additionally, two notes totaling $1,049,000 were issued to Mr. Jurasin in lieu of payment of dividends from JOG, which in turn represented funds advanced by JOG to its subsidiaries Amber and RLE to fund operations. Interest is accrued at a rate of 4% per year. The first note of $884,000, issued on August 5, 2010, matures upon the earlier of (i) May 31, 2013 or (ii) the date on which the Company closes any equity financing in which the Company receives gross proceeds of at least $10 million. The additional note for $165,000, issued on October 12, 2010, is due and payable on demand at any time subsequent to the repayment in full of all outstanding indebtedness of the Credit Facilities (Note 4). The Company made partial repayments on these notes of $15,152 during the year ended December 31, 2010 and $340,550 during the years ended December 31, 2012. The balance due on these notes totaled $693,298 as of June 30, 2012 and December 31, 2012. Accrued interest on these notes was $153,139 and $131,585 as of June 30, 2013 and December 31, 2012, respectively.

David R. Strawn and David M. Klausmeyer

Mr. Strawn and Mr. Klausmeyer, shareholders of the Company, each loaned the Company total of $12,193 between March 2002 and June 2005. The notes accrue interest at 8% per annum. The total accrued interest was $33,675 and $31,424 as of June 30, 2013 and December 31, 2012, respectively.

Robert M. Gray and Timothy N. McCauley

Mr. Gray, a director of the Company and employee until March 2011, and Mr. McCauley, vice president of the Company until December 2011, were owed $26,042 and $26,167, in salaries at March 31, 2013 and December 31, 2012, respectively. These balances are included in accounts payable and accrued expenses. Additionally, at June 30, 2013 and December 31, 2012, Mr. Gray was owed $50,606, included in due to related parties, for consulting services rendered prior to becoming an employee of Radiant.

- Definition

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.

+ References+ Details

RADIANT OIL & GAS INC 10-Q/A