Note 8 - Related Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Notes to Financial Statements | |||
| Related Party Transactions Disclosure [Text Block] |
The Company has entered into lease agreements with SRI Professional Services, Incorporated (“SRI”), pursuant to which the Company leases equipment used in connection with the operation of its business (the “SRI Equipment Leases”). Phillip W. Oldridge, the Company’s former Chief Executive Officer and Chairman of the Board, serves as an executive officer and a member of the board of directors of SRI. Two of the SRI Equipment Leases provide for the leasing of two vehicles that commenced on January 1, 2020 and the combined rent under such leases is $3,880 per month, and a third SRI Equipment Lease provides for a trailer lease that commenced on December 1, 2019, under which the rent is $3,891 per month. The total monthly payment obligation of the Company under the SRI Equipment Leases is $7,771. The Company recorded rent expense of $23,312 and $23,312 for the three months ended June 30, 2026 and 2025, respectively. The Company recorded rent expense of $46,624 and $46,624 for the six months ended June 30, 2026 and 2025, respectively.
The Company has entered into a commercial lease agreement (the “ABCI Office Lease”) with Alpha Bravo Charlie, Inc. (“ABCI”) that commenced on April 1, 2020, for the lease of office space in Porterville, California. The monthly rent for this facility is approximately $5,000. Phillip W. Oldridge, the Company’s former Chief Executive Officer and Chairman of the Board, is a director of ABCI. The Company recorded rent expense of $15,000 and $15,000 for the three months ended June 30, 2026 and 2025, respectively. The Company recorded rent expense of $30,000 and $30,000 for the six months ended June 30, 2026 and 2025, respectively.
The Company expensed $131,000 and $45,000 for the three months ended June 30, 2026 and 2025, respectively, to Shell Castle LLC, an entity owned by Jason Maddox for services rendered as an executive officer of the Company in lieu of wages. The Company expensed $262,000 and $90,000 for the six months ended June 30, 2026 and 2025, respectively, to Shell Castle LLC, an entity owned by Jason Maddox for services rendered as an executive officer of the Company in lieu of wages.
The Company also expensed $131,000 and $45,000 for the three months ended June 30, 2026 and 2025, respectively, to Met Consulting LLC, an entity owned by Elgin Tracy for services rendered as an executive officer of the Company in lieu of wages. The Company also expensed $262,000 and $90,000 for the six months ended June 30, 2026 and 2025, respectively, to Met Consulting LLC, an entity owned by Elgin Tracy for services rendered as an executive officer of the Company in lieu of wages.
All revenue earned for the three and six months ended June 30, 2026 and 2025 by the Company's medical supplies segment was from Maddox Medical Corp. ("Maddox Medical"), a company owned by Jason Maddox, Chief Financial Officer of the Company, through a contract that Maddox Medical holds with a third party (that supplies medical gowns, among other things, to the federal government) that is fulfilled by Maddox Industries, a wholly-owned subsidiary of the Company.
The Company also maintains a procurement contract for electric vehicles and their components and accessories with EVTV Canada, a related party whereby one of its officers holds a significant number of shares in the Company.
On April 1, 2025, the Company entered into a three-year sub-lease arrangement with Maddox Medical (with renewal options), an entity of which Jason Maddox, the Chief Financial Officer of the Company, is the sole stockholder, to lease a facility in Houston, Texas for its corporate and administrative operations. See Note 10 - Leases for additional disclosures.
On April 1, 2026, the Company entered into a nine-month lease arrangement with CAVOK Air Texas LLC ("CAVOK") (with automatic one-year renewals), an entity related to certain executives of the Company for vehicle storage.
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