Related Party Transactions |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 6 – Related Party Transactions
The following transactions occurred between related parties; therefore, there can be no guarantee that the terms, conditions, interest rates, or prices were transacted at an arm’s-length rate.
Aircraft Lease
On September 1, 2023, the Company and Cloud Transport Operations LLC (“Cloud Transport”) entered into a dry lease agreement (the “Dry Lease”) for a Cessna T210N Turbo Centurion plane. The Dry Lease allows the Company to lease the plane for $350 per hour plus insurance and maintenance costs. Rick Bentley (“Bentley”), the Company’s Founder and its Chief Executive Officer at the time the Dry Lease was signed, has an indirect ownership interest in Cloud Transport. In addition, also effective September 1, 2023, the Company and Hydro Hash, Inc. (“HH”) entered into a side agreement related to the Dry Lease, pursuant to which HH agreed, in exchange for use of the plane, to cover 40% of the insurance and maintenance costs for the plane under the Dry Lease. Mr. Bentley is the Chairman and a significant stockholder of HH. On March 25, 2025, the Company exercised its right to cancel the Dry Lease by providing 120 days notification of termination.
Issuance of Shares for Note Receivable
On February 20, 2020, the Company issued shares of Class A common stock to Mr. Bentley in exchange for a promissory note with a principal amount of $6,000. The note receivable bore interest at an annual rate of 1.86% and was scheduled to mature in February 2030. The note was repaid in full on November 12, 2025, including cumulative interest of $639.93.
Data Center Lease
On January 1, 2024, the Company entered into a month-to-month lease agreement (the “Lease”) with Hydro Hash (HH), a related party, for additional data center space. The Lease includes space, power, and high-speed internet access and qualifies as a short-term lease under ASC 842. Accordingly, lease costs are recognized as lease expense on a straight-line basis over the lease term, and no right-of-use asset or lease liability has been recorded. Under the Lease, the Company pays fixed monthly base rent of approximately $5,000. In addition, the Company pays a fixed monthly amount of approximately $3,000 to reimburse HH for third-party bandwidth services.
Consulting Agreement
On February 16, 2026, the Company entered into a month-to-month consulting agreement (the “Agreement”) with Melissa Hargis, a related party, for software engineering services. The Agreement provides for Ms. Hargis to provide software engineering services to the Company on a monthly basis at a rate of $8,000 per month. During the three-month period ended March 31, 2026, the Company incurred $8,000 of expense related to the Agreement.
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