RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| RELATED PARTY TRANSACTIONS | |
| RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS
On September 10, 2025, the Company entered into a promissory note with its CEO, Kent Wilson, in the amount of $54,000. The note included an original issue discount of $13,500, resulting in net proceeds of $40,500. The note bears interest at a rate of 18% per annum and matures on September 10, 2026. The note is secured by all of the Company’s assets in a junior position to the Company’s senior secured creditors. At inception, the Company recorded a discount against the note payable in the amount of $13,500 for the original issue discount. Amortization of debt discount was $3,191 and $-0- in the three months ended June 30, 2026 and 2025, respectively and $6,347 and $-0- in the six months ended June 30, 2026 and 2025, respectively.
The Company has related party transactions with two of the executive officers, who have paid expenses on behalf of the Company. As of June 30, 2026 and December 31, 2025, the Company had due to related party an amount of $35,597 and $43,631, respectively, to the Company’s CEO, Kent Wilson, and $105,481 and $61,923, respectively, to the Company’s COO, Jeffrey Hail.
The Company had related party transactions with its shareholder Aerospace Capital Partners, LLC (“ACP”), for two Convertible Promissory Notes totaling $728,200 as of June 30, 2025, both of which were converted into shares of the Company’s Series A Preferred Stock in June 2025. See Note 10 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, for additional information on the related party Convertible Promissory Notes and their subsequent conversion.
Additionally, as of June 30, 2025, there was a payable due to ACP of $110,665 that was subsequently paid in April 2025 where payments were made mainly for professional fees in the amount of $50,665 and deposits to the Company’s bank account of $60,000. |