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

13. RELATED PARTY TRANSACTIONS

 

The Company acts as a product formulator and contract manufacturer for Avini Health (“Avini”). The Company’s former chief executive officer, who held that position through March 2024, is an owner of Avini and is its chief scientific officer. Following March 2024, this individual assumed the role of Operations Manager of the Company.

 

During September 2023, the sales and manufacturing structure between the Company and Avini was revised. Avini assumed responsibility for manufacturing its own products, and the Company transferred to Avini certain raw materials and packaging supplies related to amounts previously advanced by Avini. In connection with this transition, the Company relocated its operations to a Boca Raton facility leased by Avini. Under this arrangement, the Company uses the facility rent-free, shares space and resources with Avini, and Avini pays all lease and office-related expenses. Sales to Avini declined beginning in 2024 as Avini began to manufacture its own products; however, the Company benefits from reduced operating costs and continued access to manufacturing capabilities for its own Nutra Pharma–branded products.

 

As of March 31, 2026 and December 31, 2025, the Company recorded accounts receivable from related party of $23,357 and $24,385, respectively, related to Avini product sales.

 

 

During 2010 we borrowed $200,000 from one of our directors. Under the terms of the loan agreement, this loan was expected to be repaid in nine months to a year from the date of the loan along with interest calculated at 10% for the first month plus 12% after 30 days from funding. We are in default regarding this loan. The loan is under personal guarantee by Mr. Deitsch. We repaid the principal balance in full as of December 31, 2016. The Company paid $65,000 of accrued interest during 2021 and 2022, including $10,000 settled through the issuance of 12,500,000 shares of common stock in a related-party transaction in 2021, and paid an additional $10,000 of accrued interest during the first quarter of 2026. At March 31, 2026 and December 31, 2025, we owed this director accrued interest of $208,833 and $202,831, respectively.

 

As of March 31, 2026 and December 31, 2025, we had the following related party balances:

 

   March 31,   December 31, 
   2026   2025 
Account receivable – related party, net  $23,357   $24,385 
Due to officers (See Note 5)   1,685,020    1,592,794 
Accrued payroll due to officers   1,913,850    1,854,802 
Accrued interest to a related party   208,833    202,831 

 

For the three months ended March 31, 2026 and 2025, we had the following related party transactions:

 

  

March 31,

2026

  

March 31,

2025

 
Net sales to a related party  $20,968   $36,420 
Raw materials purchased from a related party   -    13,000 
Interest expense to a related party   6,002    5,585 

 

These transactions were not conducted at arm’s length and therefore may not reflect the terms that would have been agreed to with an unrelated third party.