Related Party Transactions |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2026 | ||||
| Related Party Transactions [Abstract] | ||||
| RELATED PARTY TRANSACTIONS |
The Company’s Chief Executive Officer and the Company’s President, are married. The marital relationship between these two executive officers represents a related-party relationship under ASC 850-10-50-1.
While both individuals serve in executive leadership positions, all compensation with each officer has been approved by the Company’s Board of Directors, excluding the related parties, to ensure such arrangements are on terms deemed reasonable and consistent with arms-length practices.
The following notes signed with the CEO are unsecured and due on demand:
On January 2, 2026, the CEO signed a promissory note with the Company for $250,000.
On January 21, 2026, the CEO signed a promissory note with the Company for $250,000.
On January 27, 2026, the CEO signed a promissory note with the Company for $450,000.
On February 3, 2026, the CEO signed a promissory note with the Company for $100,000.
On February 9, 2026, the CEO signed a promissory note with the Company for $50,000
All notes expire at the annual date from issuance and accrue interest at 7% per annum.
As of June 30, 2026 the total of related party loans to our CEO is $2,100,000. At December 31, 2025 the balance was $1,000,000.
As of June 30, 2026, the Chief Executive Officer had $1,002,633, the President $1,263,645 and the Chief Financial Officer $83,000, respectively, in accrued compensation that they have voluntarily deferred until future periods. Payments of $75,000 and $45,000 were made to the President and Chief Financial Officer respectively during the three months ended June 30, 2026. For the six months ended June 30, 2026 payments of $300,000, $294,688 and $115,000 were made to the Chief Executive Officer, President and Chief Financial Officer respectively.
Payments of $60,000 and $18,000 were made to the President and Chief Financial Officer respectively for the three months ended June 30, 2025. For the six months ended June 30, 2025 payments of $195,000 and $36,000 were made to the President and Chief Financial Officer respectively.
At December 31, 2025, the Chief Executive Officer had $802,633, the President $1,195,833 and the Chief Financial Officer $116,022, respectively, in accrued compensation that they have voluntarily deferred until future periods.
During the three and six months ended June 30, 2026, the Company engaged an immediate family member of its Chief Executive Officer to provide operational consulting services. Compensation paid to the employee during the three and six months ended June 30, 2026, was $87,500. The compensation was determined based on the services performed and is included within operating expenses in the accompanying condensed consolidated financial statements. As of June 30, 2026, there were amounts due to or from this related party. |