v3.26.1
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 5– RELATED PARTY TRANSACTIONS

 

Related party notes payable consisted of the following:

  

   June 30,   December 31, 
   2026   2025 
Note payable - ARJ Trust  $650,000   $650,000 
Loan - Chris Jones   1,450,000    1,600,000 
Notes payable   2,100,000    2,250,000 
Less current portion   (2,100,000)   (2,250,000)
Note payable long-term portion  $-   $- 

 

ARJ Trust

 

In December 2008, the Company entered into a note payable with ARJ Trust, a trust that is indirectly controlled by the Company’s chief executive officer. The note had a principal amount of $500,000, an interest rate of 8.50% per annum, and an amended maturity date of September 30, 2026. The Company is required to make monthly interest-only payments of $3,541.

 

In June 2010, the Company entered into a second note payable with ARJ Trust. The note has a principal amount of $150,000, an interest rate of 8.50% per annum, and an amended maturity date of September 30, 2026. The Company is required to make monthly interest-only payments of $1,063.

 

The Company made interest-only payments of $13,812 during the six months ended June 30, 2026 and 2025, respectively. The principal balance of the notes was $650,000 at June 30, 2026 and December 31, 2025.

 

Chief Executive Officer

 

During the year ended December 31, 2024, the Company’s Chief Executive Officer loaned the Company an aggregate of $2.0 million to fund operating expenses. The loan bears no interest and has no stated maturity date. During the six months ended June 30, 2026, the Company repaid an additional $150,000 of principal. The outstanding principal balance of the loan was $1,450,000 as of June 30, 2026, compared to the $1,600,000 as of December 31, 2025.