RELATED PARTY NOTES AND LOANS PAYABLE |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RELATED PARTY NOTES AND LOANS PAYABLE | NOTE 10 – RELATED PARTY NOTES AND LOANS PAYABLE
Related party notes payable consisted of the following:
Future maturities of related party notes and loan payables as of June 30, 2025:
ARJ Trust
In December 2008, the Company entered into a note payable with ARJ Trust, a trust that is indirectly controlled by the Company’s chief executive officer. The note has a principal amount of $500,000, an interest rate of 8.50% per annum, and a maturity date of March 31, 2024. The Company is required to make monthly interest-only payments of $3,541.
In June 2010, the Company entered into a second note payable with ARJ Trust. The note has a principal amount of $150,000, an interest rate of 8.50% per annum, and a maturity date of March 31, 2024. The Company is required to make monthly interest-only payments of $1,063.
On March 31, 2024, the maturity date of the notes was extended to March 31, 2025. On March 31, 2025, the maturity date of the notes was extended to September 30, 2025.
The Company made interest-only payments of $27,624 and $24,713 during the six months ended June 30, 2025 and 2024, respectively. The principal balance of the notes was $650,000 at both June 30, 2025 and December 31, 2024.
McKettrick
In May 2019, the Company entered into a $1,750,000, zero interest rate note payable with a former shareholder to repurchase all their owned shares in the Company. The note is payable in annual installments of $250,000 due on December 21 of each year. The note matures on December 1, 2027. If the annual installment is not paid within 10 days of the due date a late fee of 5% is charged. The principal balance of the note payable was $800,000 at both June 30, 2025 and December 31, 2024.
Carver
In January 2021, the Company entered into a $222,000, zero interest rate note payable with a former shareholder to repurchase all their owned shares in the Company. The note is payable in semi-annual installments of $18,500 due on March 31 and September 30 each year and matures on October 1, 2027. The Company made the required installments totaling $18,500 for the three months ended March 31, 2025. The principal balance of the note payable was $92,500 and $111,000 at June 30, 2025 and December 31, 2024, respectively.
Chris Jones
During the year ended December 31, 2024, the Company chief executive officer loaned the Company an aggregate of $2 million for operating expenses. The loaned amount has a zero interest rate and no stated maturity date. The Company made a $250,000 payment towards the loan during the three months ended June 30, 2025, however, the Company expects to pay back the loan in full. The principal balance of the loan payable was $1,750,000 and $2,000,000 at June 30, 2025 and December 31, 2024, respectively.
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