RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS
Due to related parties
In connection with the Acquisition of Safe-Pro USA, the Company agreed to assume a liability due to the former member of Safe-Pro USA, who is a current director of the Company, of $1,622,540. The Safe-Pro USA preacquisition members advanced funds to Safe-Pro USA for working capital purposes prior to the acquisition and during the 2024, 2023 and 2022 periods. Additionally, during 2024, 2023 and 2022, a company owned by the preacquisition members paid certain expenses and wages on behalf of the Company and was reimbursed for these expenses. These advances are non-interest bearing and are payable on demand but only from proceeds received from contracts the Bangladesh Ministry of Defense customer. During the six months ended June 30, 2026 the Company did not receive any funds from the Bangladesh receivables and made payments of $4,500. On June 30, 2026 and December 31, 2025, amounts due to the former member amounted to $428,906 and $433,406, respectively, which is included in due to related parties on the accompanying unaudited consolidated balance sheets. See Note 8 –Contingent amounts due to related parties.
On March 31, 2025, Mr. Borkar, President of Safe-Pro USA and an employee, which is his spouse, agreed to forgive aggregate accrued salary of $64,615, which has been recorded as contributed capital as presented on the condensed consolidated statement of stockholders’ equity. As of June 30, 2026 and December 31, 2025 the accrued wages balance for Mr. Borkar was $3,626 and $3,956, respectively.
As of June 30, 2026 and December 31, 2025, the accrued wages balance for the spouse of Mr. Borkar was $3,626 and $3,956, respectively.
For the six months ended June 30, 2026 and 2025, the Company recorded net wages of $60,000 and $60,000 for the spouse of Mr. Borkar.
SAFE PRO GROUP INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (unaudited)
Related party purchases
During the six months ended June 30, 2026 and 2025, the Company purchased inventory and services from a company owned by the spouse of Mr. Borkar, in the amount of $4,261 and $5,299, respectively, which is included in cost of sales on the accompanying unaudited consolidated statements of operations.
Return of shares
During the six months ended June 30, 2026, the Company completed certain equity transactions involving officers of the Company, including the return and cancellation of shares of common stock previously issued under the Company’s equity incentive plan. In addition, certain shares were returned in connection with share withholding to satisfy tax obligations related to equity awards. An aggregate of shares were returned to the Company, cancelled, and are no longer outstanding.
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