Related Party Transactions |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Related Party Transactions | |
| Related Party Transactions | Note 4. Related Party Transactions
Executive Expense Reimbursements
The Company has recognized expense reimbursements in the form of informal, undocumented due on demand advances to the Company made by Mr. Zdanow, the Company’s CEO using his personal finances. This includes cash infusions as well as paying expenses on behalf of the Company. As of March 31, 2025 and December 31, 2024, $134,565 and $190,579, respectively, was due to the Company’s CEO and is reflected in ‘accrued expenses and advances, related party’ in the accompanying consolidated balance sheets.
Advance to Affiliated Entity
During the year ended December 31, 2024 and prior to the acquisition of HLDCO the Company advanced an entity controlled by Mr. Zdanow $400,700. On March 11, 2025, this advanced was formalized into a promissory note receivable. Under the new terms, the note bears interest at 5% per annum, requires no monthly payments, is unsecured and is due on March 11, 2035. The Company classifies this 10-year note receivable as loan receivable under ASC 310, as it has the positive intent and ability to hold the note until its maturity date. The note is initially recognized at fair value, and is measured at amortized cost using the effective interest method subsequently. The note is presented on the balance sheet at its amortized cost, inclusive of accrued interest. The stated interest rate reflects the effective yield, resulting in a carrying value that equals the principal plus accumulated interest receivable. As of March 31, 2025 the balance remains outstanding.
Revenues and Accounts Receivable, related party
During three months ended March 31, 2025 and 2024, the Company recognized revenues of approximately $-0- and $159,000 to entities which share common management. As of March 31, 2025, all amounts due from these entities have been fully reserved through an allowance for credit losses established in previous periods.
Notes Payable
The Company has 5 notes payable due to a related party as described in Note 7. As of March 31, 2025, accrued interest due under these notes was $64,141. |