v3.26.1
RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

Note 10 RELATED PARTY TRANSACTIONS

 

At March 31, 2026 and December 31, 2025, related parties’ payable and accrued expenses consisted of the following:

 

   March 31,   December 31, 
   2026   2025 
Accounts payable to Andrew Poole  $217,425   $217,425 
Accounts payable to InnovaQor   184,370    143,890 
Accounts payable to RHI   69,126    33,670 
Rent payable to a subsidiary of RHI   317,568    281,568 
Accrued interest on related parties’ notes payable (Note 9)   1,147,222    1,097,222 
Payables owed to Directors   227,354    225,000 
Related parties’ payables and accrued expenses  $2,150,415   $1,998,775 

 

In addition to the transactions discussed in Notes 9, 11, 12, and 16, the Company had the following related party activity during the three months ended March 31, 2026 and 2025:

 

Health Information Technology Provided By InnovaQor

 

RCHI and SCCH contracted with InnovaQor to provide ongoing information technology-related services totaling approximately $0.1 million and $0.1 million, respectively, during the three months ended March 31, 2026 and 2025, and they owed InnovaQor $0.2 million and $0.1 million at March 31, 2026 and December 31, 2025, respectively. RHI holds preferred stock in InnovaQor and Mr. Lagan is the controlling shareholder of InnovaQor.

 

Software Development Agreement with InnovaQor

 

In July 2025, Myrtle entered into an agreement with InnovaQor to develop a behavioral health patient engagement mobile application with a cost of $0.1 million, which is currently under construction as reflected in Note 7.

 

Rent and Utilities Owed to RHI and A Subsidiary of RHI Under Facility Leases

 

As of March 31, 2026 and December 31, 2025, SCCH and Myrtle owed $0.3 million and $0.3 million, respectively, to a subsidiary of RHI for rent under facility leases that are more fully discussed in Note 11.

 

During the three months ended March 31, 2026 and 2025, the Company incurred $56,456 and $58,680, respectively, for rent and utilities associated with its corporate offices and RHI was owed $69,126 and $33,670 for the rent and utilities at March 31, 2026 and December 31, 2025, respectively. The Company shares office facilities with RHI and the rent stems from a lease between RHI and a third party.