NOTE 10 - DUE TO RELATED PARTIES |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| NOTE 10 - DUE TO RELATED PARTIES | NOTE 10 – DUE TO RELATED PARTIES
Related party balances consisted of the following as of June 30, 2026 and December 31, 2025:
During the six months ended June 30, 2026, the Company repaid in full the outstanding advances previously made by officers to fund operating expenses and other Company obligations. In connection with the settlement of these advances, payments exceeded the remaining amounts owed by $1,000. The resulting amount due from an officer is presented as Due from related party on the accompanying condensed consolidated balance sheet as of June 30, 2026.
The Company’s Chief Financial Officer provides services under a consulting arrangement. The Company recognized $24,000 in compensation expense for the six months ended June 30, 2026. As of June 30, 2026 and December 31, 2025, accrued but unpaid fees totaled $290,000 and $266,000, respectively.
In August 2024, the Company issued an unsecured promissory note to its Chief Executive Officer in the principal amount of $4,500, bearing interest at 20% per annum and maturing on February 12, 2025. During the six months ended June 30, 2026, the Company repaid the note and all related accrued interest in full and recorded a gain on settlement of $118. Accordingly, no principal or accrued interest related to this note remained outstanding as of June 30, 2026.
On April 18, 2025, the Company issued a $25,000 Series 2025 mandatorily convertible note to the spouse of a Company director. The note matures on April 18, 2028 and was issued on substantially the same terms as those offered to unaffiliated investors. The principal balance of $25,000 remained outstanding as of June 30, 2026 and December 31, 2025 and is classified as long-term.
Interest expense on related party notes were $1,621 and $960 for the six months ended June 30, 2026 and 2025, respectively. Interest expense on related party notes was $762 and $514 for the three months ended June 30, 2026 and 2025, respectively. Accrued interest was $3,096 and $3,063 as of June 30, 2026 and December 31, 2025, respectively. |