RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS The Company engages in transactions with related parties in the ordinary course of business. Related parties include the Company’s directors, executive officers, and entities in which such individuals have a financial interest. During the six months ended June 30, 2026, the Company issued 150,000 shares of restricted, non-trading common stock to its Chief Executive Officer pursuant to a non-cash, restricted stock compensation arrangement. The shares vested immediately upon grant and had an aggregate fair value of $112,500 determined based on the quoted OTC market price of the Company’s common stock on the grant date. Of this amount, $24,300 represented a performance bonus that was accrued during 2025 and settled through the issuance of restricted , non-trading common stock in 2026. The remaining $88,200 represented compensation expense during the six s ended June 30, 2026. The Company’s common stock closed at $0.81 per share on November 17, 2025 , and $0.66 per share on April 8, 2026, which were the respective grant dates used to determine the fair value of the awards. The Company did not have comparable non-cash, restricted stock compensation transactions with related parties during the six months ended June 30, 2025. On October 1, 2025, EQUATOR Beverage Company (the “Company”) entered into a loan agreement with Glenn Simpson (the “Lender”), who is considered a related party. Pursuant to the agreement, the Lender provided the Company with a loan in the principal amount of $340,000. The loan bears interest at a rate of 9.25% per annum, calculated on the outstanding principal balance. The Company is required to make monthly payments consisting of (i) principal in the amount of $10,000 , representing the minimum required payment under the agreement; and (ii) accrued interest on the remaining unpaid balance. Payments commenced on October 1, 2025, and continue on a monthly basis until the loan is fully repaid. The loan does not have a stated maturity date. Based on the required monthly principal payments, the outstanding balance would be repaid over the remaining amortization period unless prepaid. The Company may prepay all or a portion of the outstanding balance at any time without penalty. Prepayments are applied first to accrued interest and then to principal. In the event of default, defined as a failure to make a required payment within 15 days of its due date, the Lender has the right to declare the entire outstanding balance, together with accrued interest, immediately due and payable. The Company classified the outstanding loan balance as a current liability as of June 30, 2026. Although the loan does not have a stated maturity date, the agreement requires minimum monthly principal payments of $10,000 and permits additional principal payments without penalty. Based on the required payments and the Company’s historical payment pattern, management expects the outstanding balance to be repaid within 12 months. As of June 30, 2026, the loan payable to Mr. Simpson was $160,000, which was a decrease of $180,000 from the December 31, 2025 balance of $340,000. |