RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 10. RELATED PARTY TRANSACTIONS
Americana Credit Agreement and Revolving Note
On March 5, 2025, the Company entered into a Revolving Credit Facility Agreement with YES Americana Group, LLC (“Americana”), which was amended on June 24, 2025 (the “Credit Agreement”). Under the Credit Agreement, Americana agreed to provide the Company with a revolving credit facility of up to $2,000,000 (the “Facility”). During the second quarter of 2026, the Company repaid all amounts outstanding under the Facility, and no borrowings remained outstanding as of June 30, 2026. In connection with the repayment, the Company made an overpayment of approximately $28,000, which was recorded as a related-party receivable as of June 30, 2026. Americana refunded the overpayment in full in July 2026.
As of June 30, 2026, there were no outstanding loans payable to related parties, compared to $286,546 as of December 31, 2025. Interest expense on related party loans was $0 and $21,346 for the three months ended June 30, 2026 and 2025, respectively, and $0 and $46,106 for the six months then ended.
Settlement Agreements
Reliance Global Holdings, LLC (“RGH”), an affiliate of the Company, was previously party to certain guarantees related to historical stock purchase transactions involving the Company’s common stock. In March 2026, the Company entered into two separate full and final release and settlement agreements (collectively, the “Settlement Agreements”) with third parties relating to such transactions and the related guarantees issued by RGH. Under the terms of the Settlement Agreements, the Company agreed to pay aggregate cash consideration of approximately $130,910, consisting of approximately $90,560 pursuant to a settlement agreement entered into on March 13, 2026, and approximately $40,350 pursuant to a settlement agreement entered into on March 11, 2026. Upon payment, the settlement amounts represented full and final satisfaction of all claims and obligations arising from the underlying stock purchase transactions and related guarantees, and the parties exchanged mutual releases. All prior obligations related to these matters were terminated. The Company’s independent directors approved the Settlement Agreements and related payments, determining that resolution of these matters was in the best interests of the Company.
Formation of LGG and Investment in Innervate
During the three months ended June 30, 2026, the Company formed LGG and, through LGG, invested in Innervate. These transactions involve related parties, as certain members of the Company’s management and Board of Directors hold ownership interests in the noncontrolling member of LGG, and one member of the Company’s Board of Directors serves as the chief executive officer of Innervate. For a full description of these related party transactions, including the Company’s ownership interests, the intercompany promissory note, and the investment in Innervate, see Note 2 - Formation of LGG and Investment in Innervate.
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