Subsequent Events |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Note 16 – Subsequent Events
The Company evaluated its December 31, 2025 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued and concluded that except as noted below, no subsequent events have occurred that would require adjustment or disclosure into the consolidated financial statements.
During January 2026, the Company repaid a short-term loan from a related party in the amount of $100,000 along with interest of $15,000.
Subsequent to December 31, 2025, the Company has repaid $175,000 of existing $17,500,000 May 2025 Loan.
During January 2026, the Company paid a bonus to a company owned by the CEO of $400,000 for 2026.
On March 10, 2026, the Company entered into an agreement with Cedar Advance LLC for a cash advance in the amount of $2,800,000 with a repayment amount of $3,500,000 if paid in 30 days. The Company received $980,000 after deducting $140,000 in fees and paying off prior advance of $1,680,000. The Company is required to make weekly payments of $100,800. In conjunction with the advance, the Company agreed to issue 118,000 shares of common stock to the consultant who facilitated the facility and thus recognized $153,400 as financing cost.
During March 2026, the Company entered into a confidential settlement agreement and mutual general release with a vendor. The Company has made payment of $420,000 toward this agreement and the outstanding balance is $280,000.
During March 2026, the Company laid off 13 employees in order to right size its overhead expenses.
During March 2026, the Company was notified by a major customer, Costco, that due to an over-stock of FOCUSfactor inventory, driven by the declining sales of 22%, they are in a position where they will not be ordering the majority of the product for their promotional endcaps for the remainder of the year.
During March 2026, the Company was notified by its subordinated lender, Sanders Morris Harris, LLC., that they believe their loan has a maturity date of March 31, 2026, and they do not intend to grant an extension on the maturity date, although the loan is fully subordinated to the senior lender. |