Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions | |
| Related Party Transactions | 9. Related Party Transactions
The Company has certain reimbursement transactions with an affiliate entity under common ownership with its majority shareholder. The Company had a payable to the affiliate of $82,082 and $283,833 at June 30, 2026 and December 31, 2025, respectively, which is included in payables to related parties on the accompanying condensed consolidated balance sheets.
Effective January 1, 2025, the Company had a management agreement with Independence TX LLC, an affiliate, whereby the affiliate provided management services, including executive services, to the Company for $500,000 per month. During the six months ended June 30, 2025, the Company paid $3,000,000 for these services, which was recorded in general and administrative expenses on the accompanying condensed consolidated statements of operations. This agreement was terminated effective September 30, 2025.
Effective January 1, 2025, the Company has an office and warehouse lease agreement with Independence WI LLC, an affiliate, whereby the Company leases office and warehouse space in Wisconsin for $50,000 per month. During the three and six months ended June 30, 2026, the Company paid $50,000 and $200,000, respectively, for these services. At June 30, 2026 and December 31, 2025, the Company had a related party payable under this lease agreement of $0 and $150,000, respectively, which is included in payable to related parties on the accompanying condensed consolidated balance sheets. Beginning in May 2026, the lease payments were suspended for six months.
Effective December 30, 2025, the Company entered into an Administrative Services Agreement (the “ASA Agreement”) with IPAS Asset Management, LLC (“IPAS”), a related party, whereby IPAS will provide administrative support services to the Company at IPAS’s actual expenses incurred plus a $10 administrative fee. The agreement can be terminated without penalty upon 30 days written notice. At June 30, 2026 and December 31, 2025, the Company had a related party payable under the ASA Agreement of $52,082 and $0, respectively, which is included in payables to related parties on the accompanying condensed consolidated balance sheets.
Effective in March 2026, the Company entered into an Administrative Services Agreement (the “ASA Agreement”) with Rincon II LLC (“Rincon”), a related party, whereby Rincon will provide administrative support services to the Company at $30,000 per month plus out-of-pocket expenses. The ASA Agreement can be terminated without penalty upon 30 days’ written notice. As of June 30, 2026, the Company had a related party payable of $30,000, which is included in payables to related parties in the accompanying condensed consolidated balance sheets.
In March 2026, we entered into a credit agreement with Independence Investors pursuant to which Independence Investors agreed to lend up to $4.0 million to the Company, payable on demand after 30 days’ notice, but in no event later than April 30, 2027. The line of credit bears interest at a rate of 4.0% per annum. As of June 30, 2026 $2.2 million was available to be drawn on the line of credit. In July 2026, the company borrowed $500,000 on the line of credit. |