REVENUE SHARE PURCHASE AGREEMENTS |
6 Months Ended |
---|---|
Jun. 30, 2025 | |
Revenue Share Purchase Agreements | |
REVENUE SHARE PURCHASE AGREEMENTS |
During the six months ended June 30, 2025, the Company entered into Revenue Purchase Agreements with five separate accredited investors. Pursuant to the terms of the agreements the Company has agreed to sell a continuing interest in the revenue it generates. The total purchase price under the five agreements is $500,000, less $10,000 in total for fees, which has been recorded as a debt discount, to be amortized over the term of the agreement. As an added inducement for entering into the Revenue Purchase Agreements, the Company issued a total of shares of common stock to the investors as commitment shares. The fair value of the shares was determined using the closing stock price on the grant date and was allocated against the consideration received.
On May 29, 2025, the Company entered into an additional Revenue Agreement with Kingdom Building, Inc. (“KBI”). Pursuant to the Agreement, KBI agreed to purchase a continuing interest in the revenue generated by the Company and each of its subsidiaries from any and all sources in consideration of the purchase price of $200,000. Pursuant to the Agreement, KBI has the right, but not the obligation, to convert all or any part of the then outstanding Repurchase Price, into shares of the Company’s Series D Preferred Stock, par value $ per share. As an added inducement for entering into the Revenue Purchase Agreements, the Company issued shares of Series D Preferred stock as commitment shares. As of June 30, 2025, the Company was still finalizing updating its Articles of Incorporation to establish the Series D; therefore the commitment shares are disclosed as preferred stock to be issued as of June 30, 2025.
|