Note 9 - Related Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2025 | |||
| Notes to Financial Statements | |||
| Related Party Transactions Disclosure [Text Block] |
The Company has entered into lease agreements with SRI Professional Services, Incorporated (“SRI”), pursuant to which the Company leases equipment used in connection with the operation of its business (the “SRI Equipment Leases”). Phillip W. Oldridge, the Company’s Chief Executive Officer and Chairman of the Board, serves as an executive officer and a member of the board of directors of SRI. Two of the SRI Equipment Leases provide for the leasing of two vehicles that commenced on January 1, 2020 and the combined rent under such leases is $3,880 per month, and a third SRI Equipment Lease provides for a trailer lease that commenced on December 1, 2019, under which the rent is $3,891 per month. The total monthly payment obligation of the Company under the SRI Equipment Leases is $7,771. As a result of the SRI Equipment Leases, the Company recorded rent expense of $23,312 and $46,624 for the three and six months ended June 30, 2025, respectively.
The Company has entered into a commercial lease agreement (the “ABCI Office Lease”) with Alpha Bravo Charlie, Inc. (“ABCI”) that commenced on April 1, 2020, for the lease of office space in Porterville, California. The monthly rent for this facility is approximately $5,000. Phillip W. Oldridge, the Company’s Chief Executive Officer and Chairman of the Board, is a director of ABCI. The Company recorded rent expense of $15,000 and $30,000 for the three and six months ended June 30, 2025, respectively, in connection with the ABCI Office Lease.
The Company incurred $37,500 and $75,000 for the three and six months ended June 30, 2025, respectively, of costs related to engineering consulting services from 42Motorsports LTD, the owner of which is a sibling of the Company's Chief Executive Officer and Chairman of the Board.
The Company also expensed $45,000 and $90,000 for the three and six months ended June 30, 2025, respectively, to Shell Castle LLC, an entity owned by Jason Maddox for services rendered as President and Interim Chief Financial Officer of the Company in lieu of wages. In addition, the Company also expensed $45,000 and $90,000 for the three and six months ended June 30, 2025, respectively, to Met Consulting LLC, an entity owned by Elgin Tracy for services rendered as Chief Operating Officer of the Company in lieu of wages.
All revenue earned for the three and six months ended June 30, 2025 by the Company's medical supplies segment was from Maddox Defense, Inc., a company owned by Jason Maddox, President and Interim Chief Financial Officer of the Company.
The Company also maintains a procurement contract with EVTV Canada, a related party whereby one of its officers holds a significant number of shares in the Company. |