Related Party Transactions |
6 Months Ended |
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Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 11 – Related Party Transactions
On April 30, 2024 (“Grant Date”), the Company entered into a two-year Management Services Agreement (the “Agreement”) with 8 Consulting LLC (the “Consultant”) for the services of our Chief Executive Officer, Dr. Allan Evans. The Agreement allows Dr. Evans to receive favorable tax benefits as a resident of the Commonwealth of Puerto Rico who performs such services in Puerto Rico. Pursuant to the Agreement, Dr. Evans performs the duties and responsibilities that are customary for a chief executive officer of a public company similar to the Company. The Consultant received a $250,000 fee per year, until October 2025 at which time it was increased to $300,000 per year, payable in monthly installments. On April 1, 2026, the Compensation Committee extended the Consultants contract through December 31, 2026 and increased the annual fee to $350,000. See Note 13 - Subsequent Events.
On March 13, 2026, the Company issued vested shares of common stock to each of three of its independent directors as compensation for the first quarter 2026; the fourth independent director elected to receive cash compensation. The shares were valued at an aggregate of $ and were immediately recognized as stock compensation expense.
On April 1, 2026, the Company paid $217,943 to its investment committee, which includes the Chief Executive Officer and two independent Directors of the Company. The payment is based on a 1% per committee member based on the realized gains from investments during the previous quarter.
In January 2026, the Company received a $2.1 million order in addition to several smaller orders from Teal Drones, which is a subsidiary of Red Cat. Red Cat is a related party as Jeff Thompson is the Chief Executive Officer of Red Cat and is also on the Board of Directors of Unusual Machines. The order was delivered in the first half of 2026 and includes several different drone components manufactured and sourced from the Company. The Company recognized approximately $2.2 million in revenue from this related party for the six months ended June 30, 2026. The Company had related party receivables of $1.3 million as of June 30, 2026
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