Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS
On August 12, 2024, the Company entered into an agreement with Yakov Holdings, LLC, an entity controlled by Mr. Yakov whereby Yakov Holdings, LLC committed to loan to the Company up to Five Million Dollars ($5,000,000) (the “Yakov Holdings, LLC Loan”). The Yakov Holdings, LLC Loan is revolving in nature, allowing the Company to borrow, repay, and re-borrow amounts under the terms and conditions set forth herein, provided that the total outstanding amount shall not exceed Five Million Dollars ($5,000,000). The interest rate of the Yakov Holdings, LLC Loan is 12% and it matures on August 12, 2025. On August 12, 2025, Yakov Holdings, LLC agreed to extend the note to mature on August 12, 2027. In addition, the Yakov Holdings, LLC Loan is secured by a first priority security interest for the benefit of Yakov Holdings, LLC over all of the assets of the Company. During the six months ending June 30, 2026, Mr. Yakov advanced the Company $14,024 and received repayments of $45,000. As of June 30, 2026 and December 31, 2025, the amount due to Yakov Holdings, LLC is $136,339 and $167,315, respectively.
On October 14, 2025, the Company’s Board of Directors approved, and on November 14, 2025 the Company entered into, an amended and restated employment agreement (the “Employment Agreement”) with its Chairman, President and Chief Executive Officer, Ronny Yakov (the “Executive”). The Employment Agreement supersedes the prior agreement dated January 3, 2022 and has an initial term through December 31, 2030, with automatic one-year renewals thereafter unless terminated in accordance with its terms.
Effective May 15, 2026, the Company entered into an amended and restated employment agreement with Mr. Yakov, which supersedes his prior employment agreement and extends through December 31, 2030, with automatic one-year renewals thereafter. The agreement provides for an annual base salary of $800,000 and a target annual bonus of $400,000, each subject to annual 3% increases, as well as acquisition and milestone bonuses, quarterly grants of 200,000 shares of common stock, and a monthly automobile allowance of $3,500. The agreement also provides for certain severance benefits upon termination without cause or for good reason and accelerated vesting of equity awards upon a change in control.
During the three months ended March 31, 2026, the Company granted 200,000 shares of common stock to the CEO pursuant to the terms of their employment agreement. The shares were valued at $0.65, the closing price on the date of grant for total non-cash expense of $130,120.
During the three months ended June 30, 2026, the Company granted 200,000 shares of common stock to the CEO pursuant to the terms of their employment agreement. The shares were valued at $0.48, the closing price on the date of grant for total non-cash expense of $96,200. |