3. Related Party Transactions |
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| 3. Related Party Transactions | 3. Related Party Transactions
For the three months ended June 30, 2026 and 2025 officers’ wages were $15,300 and $12,500, respectively. For the six months ended June 30, 2026 and 2025 officers’ wages were $31,800 and $22,395, respectively. The Company also had consulting and director fee contracts with David Tobias and Cathy Carroll as noted below. At June 30, 2026 and December 31, 2025, the Company also owed an additional two (2) directors $18,750 for director’s fees that are included in stock payable.
Historically, the Company has received funds from borrowings on notes payable and advances from related parties and officers of the Company to cover operating expenses. Related parties include the officers and directors of the Company and a significant shareholder holding in excess of 10% of the Company’s outstanding shares.
Consulting expense to David Tobias, the Company’s chief executive officer and director, for each of the three months ended June 30, 2026 and 2025 was $46,875. At June 30, 2026 and December 31, 2025, the Company owed Mr Tobias $775,000 and $681,250, respectfully for consulting services and director’s fees. The last payment of these services was in June of 2022. These are included in stock payable at June 30, 2026 and December 31, 2025.
At June 30, 2026 and December 31, 2025 the Company owed the Estate of Brad Herr – prior chief financial officer $93,750 in consulting services, and $6,250, respectively in directors fees from his 2022 contract. These are included in stock payable at June 30, 2026 and December 31, 2025 for a total of $100,000.
At June 30, 2026 and December 31, 2025, the Company owed Mr Bilton, the Company’s chief operating officer, $253,125 in consulting services. These are included in stock payable at June 30, 2026 and December 31, 2025. The last payment of these services was in June of 2022.
Ms Carroll has a consulting agreement with the Company in the amount of $12,500, quarterly. For each of the three months ended June 30, 2026 and 2025 consulting expense was $12,500. Ms Carroll has elected that these payments increase her note payable each quarter.
During the year ended December 31, 2024, Trevor Reed, a director of the loaned $8,000 to the Company bearing interest at the rate of 10% per annum due on June 4, 2025. If unpaid at June 4, 2025, the interest rate increases to 12% per annum.
During the three and six months ended June 30, 2026 and 2025, David Tobias, the Company’s chief executive officer and director, loaned money to the Company to pay expenses. This note bears interest at the rate of 5% per annum.
Ms. Carroll’s note bears interest at 5% per annum. During the year ended December 31, 2025 Ms. Carroll’s note was increased by her compensation of $12,500 per quarter for a total of $50,000.
During the three months ended June 30, 2026 and 2025, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 12% per annum in the amounts of $3,994 and $6,395 respectively. During the six months ended June 30, 2026 and 2025, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 12% per annum in the amounts of $7,821 and $9,169 respectively.
The following tables reflect the related party note payable balances.
At December 31, 2025 the Company had a balance due from MJ Harvest, Inc., with whom the Company had plans to merge, of $75,055, (see Note 9). The amount is included in advances to related party on the consolidated balance sheets. The Company had advanced to MJ Harvest, $75,055 in anticipation of its merger in 2022 and had been trying to collect on this advance. In April 2025, the Company became aware that MJ Harvest (a related party with common directors) was delisted from the OTC markets, therefore, the Company allowed for the $75,055 it had advanced to MJ Harvest, as the Company is unsure whether the advance will be paid back. The Company is going to continue in its efforts to try to collect on this advance.
The Company also has an advance to a director of $1,250 at June 30, 2026 and December 31, 2025 that is included in advances to related parties. The funds were advanced to the director to cover consulting services. |
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