Related-Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| Related-Party Transactions | NOTE 6. Related-Party Transactions
During 2023, the Company received $176,342 from IAC as consideration to acquire 803 shares of Series A Preferred Stock. The shares were issued in December 2024 therefore were recorded as Series A Preferred Stock to be issued as of March 31, 2024 (see NOTE 8).
As described in NOTE 5 the Company purchased certain intangible assets from related parties.
Through an entity controlled by Carlos Montoya, the Company’s CEO and controlling stockholder, Mr. Montoya currently pays substantially all the expenses for the Company’s operations and certain capital expenditures. For the six months ended June 30, 2025 and 2024, the related party deposited cash into the Company and/or paid Company expenses of $421,822 and $526,232, respectively. These advances from the related party are repayable by the Company, unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances. As of June 30, 2025 and December 31, 2024, the balance due to this related party was $1,758,461 and $1,336,639, respectively.
During the six months ended June 30, 2025, the Company, on behalf of one of its related parties, Oktane Media LLC (“Oktane”), owned by the Company’s Chief Marketing Officer, conducted the payroll process for Oktane. The Company paid Oktane’s employee payroll, payroll taxes and employee benefits in the amount of $256,048. The Company got reimbursed the same amount from Oktane during the six months ended June 30, 2025, with an additional advance of $26,630. Oktane Media LLC also charged $44,000 for the services it performed for the Company during the six months ended June 30, 2025, and the Company paid $44,000. As of June 30, 2025, the Company owed Oktane $26,630.
On March 30, 2023, the Company sub-leased its Enterprise Workflow/Intelligent Automation Platform, as allowed under a relicensing provision within that certain master software license agreement, to I-ON Acquisition Corp., an entity owned by Carlos Montoya, the Company’s Chief Executive Officer, for annual fees of $130,500. The Company received the full amount at contract inception and recorded it as deferred revenue, to be recognized into revenue over the twelve-month licensing period starting in April 2023, as the Company’s single performance obligation was to allow I-ON Acquisition Corp. to utilize the software during the license period. The Company recognized revenue of $0 and $32,625 for the six months ended June 30, 2025 and 2024, respectively.
|