Note 6 – Related Party Transactions

The Company’s CEO earns $10,000 per month under a new agreement. This agreement is effective October 31, 2023. The following compensation was recorded within general and administrative expenses – related parties on the statements of operations: $120,000 and $30,000 for the twelve months ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and December 31, 2023, $150,000 and $30,000, respectively, of compensation was unpaid and was included in accrued expenses on the consolidated balance sheets.

During 2016, 2017, and 2019 Balance Group LLC loaned an additional $66,850 to the Company. The notes are in default and have an accrued interest balance of $42,488. The note balance of $66,850 is included in the note payable – related party in current liability as of December 31, 2024 and December 31, 2023.

On October 3, 2019, the Company received $40,000 from The Foundation in exchange for a promissory note which bears 12% interest per annum and matured on October 10, 2020 or upon the Company raising $500,000 from outside investors, whichever occurs first. The promissory note is currently in default, and as of December 31, 2024, accrued interest on the note is $28,050. The note balance of $40,000 is included in the note payable – related party in current liability as of December 31, 2024 and December 31, 2023.

Schedule of Note Payable - Related Party 

On September 27, 2021, the Company received $50,000 from the CEO in exchange for a convertible promissory note with a face value of $53,192 which bears 12% interest per annum and matures on June 27, 2022, or upon the Company raising $250,000 from investors, whichever occurs first. The note balance of $53,192 is included in the convertible notes payable - related party, net of debt discount of $0 and $0, as of December 31, 2024, and December 31, 2023, respectively. The difference between the amount received and the face value of $3,192 was recorded as a discount and was amortized over the life of the note. Additionally, the note comes with a beneficial conversion feature of $3,799 which was also recorded as a component of equity in 2021. As of December 31, 2024, the Company has accrued interest of $22,419 and is recorded in the accrued expenses on the balance sheet. As of the date of this report, this note is in default.

On September 30, 2016, Balance Group LLC loaned $120,000 as a convertible note payable to the Company at an interest rate of 10%, due on October 1, 2017. In addition, the Company issued 600,000 warrants at an exercise price of $1 which expired on September 30, 2021. The note is currently in default and is currently recorded under convertible payable – related party in current liabilities in the balance sheet. The accrued interest balance of $99,090 is recorded in the accrued expenses on the balance sheet as of December 31, 2024.

Schedule of Convertible Note Payable - Related Party 

As of December 31, 2024, and December 31, 2023, the CEO and companies controlled by the CEO have loaned the Company a total of $1,731,358 in addition to the convertible notes discussed above. The loans carry an interest rate of 8% and 12% and mature one year and one day from the date of the loan. These loans of $1,731,358 and the accrued interest on these loans of $745,318 are in default as of December 31, 2024. All the $1,731,358 balance is reported under short-term advances from related party on the balance sheet as of December 31, 2024 and December 31, 2023.