NOTE 7 – RELATED PARTY

Due to related party

MI Labs Pty Ltd, a management company controlled by Mr. Jason May, the Company’s Chief Executive Officer and a Company Director, provides management services to the Company for which the Company is charged $25,000 monthly. During the year ended September 30, 2024, the Company incurred charges to operations of $300,000 with respect to this arrangement.

CSA Liang Pty Ltd, a management company controlled by Mr. Andrew Liang, a Company Director, provided corporate advisor services to the Company for which the Company was charged $5,000 monthly. During the year ended September 30, 2024, the Company incurred charges to operations of $60,000 with respect to this arrangement.

Sativus Investments, a management company controlled by Mr. Paul Saffron, the Company’s Chief Operations Officer, provides management services to the Company for which the Company is charged $20,000 monthly. During the year ended September 30, 2024, the Company incurred charges to operations of $240,000 with respect to this arrangement.

Parallel40 LLC, a management company controlled by Ms. Kristi Steele and Mr. David Hare, the Company’s Chief Sustainability Officers, provides management services to the Company for which the Company was charged $30,000 monthly. During the year ended September 30, 2024, the Company incurred charges to operations of $90,000 with respect to this arrangement.

Haminerals Pty Ltd, a management company controlled by Mr. Andrew Hamilton, the Company’s Chief Operations Officer (Australia), provides management services to the Company for which the Company was charged $20,000 monthly. During the year ended September 30, 2024, the Company incurred charges to operations of $100,000 with respect to this arrangement.

Pagemark Limited, a management company controlled by Mr. David Halstead, a Company Director, entered into a convertible note agreement with the Company – see NOTE 5.

Allegro Investments Limited entered into a convertible note agreement with the Company. The Company and Allegro Investments Limited share a professional relationship wherein a director serves on the boards of both entities – see NOTE 5.

On June 27, 2024, the Company sold US Thin-Films Corporation, a wholly owned subsidiary, to Thin Film Technologies Ltd., a company controlled by Mr. David Halstead, a Company Director, for $1,000. This transaction resulted in a gain of $1,646,819, which was recorded in Additional Paid-In Capital. Prior to the sale, the Company has a net liability of $1,645,819.

During the year ended September 30, 2020 a Company Advisor, A. Liang, loaned the Company $5,623. The loan is a demand note at zero interest.

During the year ended September 30, 2020 the former Company Chairman, FJ.Garafalo loaned the company $3,500. The loan is a demand note on zero interest.

As of September 30, 2024 and 2023, due to related parties was $1,151,957 and $1,985,601, respectively.

Due from related party

During September 2021, the Company approved and issued 50,000,000 shares to Rod Young who became a related party subsequent to this reporting period. The shares were fully expensed during the period.

Stock-Based Compensation

During the years ended September 30, 2024 and 2023, stock-based compensation expense relating to directors, officers, affiliates and related parties was $296,675 (27,000,000 shares) and $291,600 (46,750,000 shares), respectively.

Related Party Acquisition

On July 28, 2024, the Company acquired Ausquartz Group Holdings Pty Ltd, an entity controlled by Mr. Jason May, who is a related party. The acquisition was approved by the Company’s Board of Directors, with any related parties recused from the approval process.

Further details regarding the acquisition are provided in NOTE 11.