NOTE 8: RELATED PARTY TRANSACATIONS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Notes | |
| NOTE 8: RELATED PARTY TRANSACATIONS | NOTE 8: RELATED PARTY TRANSACTIONS
As of June 30, 2025 and December 31, 2024, there was $501,140 and $501,140, respectively, in amounts due to related parties, including $428,700 due to CSIS. The advances are unsecured, non-interest bearing and due on demand.
During the six months ended June 30, 2025, Ranco LLC purchased products aggregating $12,145,053 from AGP Holdings LLC, an entity wholly owned by Allen Park, the Company’s Chief Operating Officer and Controller, on arm’s length terms. The products consist of nicotine-related bulk raw material, which is sold by the Company to third party customers. During the three and six months ended June 30, 2025, cost of revenues pertaining to the related party purchases was $12,030,000 and $12,145,053, respectively.
During the six months ended June 30, 2024, the executives of Ranco paid payroll to certain employees totalling $130,167. The payroll was for Ranco employees, and as such, the Company recorded the expense accordingly. The amounts were paid by the executives themselves and were recognized as contributed capital into the Company. The amounts are not liable by the Company (Ranco LLC and CFN Enterprises, Inc.) for repayment. |