| RELATED PARTIES TRANSACTIONS |
NOTE
11. RELATED PARTIES TRANSACTIONS
The
principal related parties with which the Company had transactions for the six months ended June 30, 2026, and 2025 are as follows:
SCHEDULE OF RELATED PARTIES
Amounts
Due To Related Parties
| | |
June 30, 2026 | | |
December 31, 2025 | |
| Tom Ruegg (2) | |
| 315,088 | | |
| 315,088 | |
| Jason Ruegg (1) | |
| 600,000 | | |
| - | |
| Brian John (3) | |
| 254,000 | | |
| - | |
| Due to sellers of acquired businesses, net | |
| 1,607,354 | | |
| - | |
| Total | |
$ | 2,776,442 | | |
$ | 315,088 | |
| Amounts due to related
parties | |
$ | 2,776,442 | | |
$ | 315,088 | |
| |
(1) |
The
Company entered two substantially similar Boat Inventory Investment Agreements with Jason Ruegg. Under the agreement, the Investor
advances funds solely to purchase a specified boat (the “Boat”) as inventory for resale. Upon sale of the Boat, the Investor
is repaid the investment amount plus a fixed return of 6.5% of annual percentage yield of the investment amount. |
| |
(2) |
This
operating loan was obtained from Mr. Tom Ruegg on February 3, 2023, with a principal amount of $500,000 and a fixed annual interest
rate of 7.00%. Interest is accrued and will be paid together with the principal upon repayment. The loan will mature on July 1, 2027. |
| |
(3) |
The
Company had a payable of $254,000 due to Brian John, the Company’s Chief Executive Officer, consisting of accrued compensation
for services rendered and unreimbursed business expenses incurred on behalf of the Company. The payable is non-interest bearing,
unsecured, and due on demand. |
Amounts
Due From Related Parties
Amounts
due from related parties consisted of the following for the periods indicated:
| | |
June 30, 2026 | | |
December 31, 2025 | |
| OTH Equipment | |
| 9,245 | | |
| 9,245 | |
| OTH Realty II, LLC | |
| 41,857 | | |
| 25,920 | |
| OTH Sloop Point LLC | |
| 13,246 | | |
| 9,458 | |
| Jason Ruegg | |
| 5,189 | | |
| - | |
| Lewis Landing LLC | |
| 375 | | |
| - | |
| Total | |
$ | 69,912 | | |
$ | 44,623 | |
| Amounts due from related parties | |
$ | 69,912 | | |
$ | 44,623 | |
Member
Distribution
Prior
to the Company’s initial public offering (“IPO”), the Company made distributions to members of $1.4 million during
the six months ended June 30, 2025. Following the IPO, the Company has not declared or paid any dividends.
|