Note 22 - Related Party Transactions |
6 Months Ended |
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Jun. 30, 2025 | |
| Notes to Financial Statements | |
| Related Party Transactions Disclosure [Text Block] |
NOTE 22 – RELATED PARTY TRANSACTIONS
All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Company's Board of Directors.
During the three and six months ended June 30, 2025, the Company incurred engagement fees totaling $0.23 million and $0.46 million, respectively, pursuant to the engagement letter with Adnant, LLC ("Adnant") dated August 12, 2022, as subsequently amended, for executive level consulting and related business support services (the "Engagement"). On January 1, 2025, the Company entered into an Amended and Restated Engagement Letter with Adnant wherein the term of the Engagement was extended to December 31, 2025 and the monthly service fee was decreased from $0.25 million to $0.08 million, which shall be payable monthly subject to the Company having a sufficient cash balance.
On January 3, 2023, the Company entered into a sublease agreement with Adnant for use of the office building located in Downey, California as the Company's corporate headquarters. The lease term commenced on February 1, 2023 and expires on May 31, 2025, upon which the sublease shall automatically continue on a month-to-month basis thereafter. Total rent expense incurred with the related party was $55,936 and $41,474 for the three months ended June 30, 2025 and 2024, respectively, and $83,904 and $75,716 for the six months ended June 30, 2025 and 2024, respectively.
As of June 30, 2025 and December 31, 2024, total amounts due to Adnant were $1.68 million and $1.18 million, respectively, and included in "Accounts Payable & Accrued Liabilities" on the consolidated balance sheet.
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