| Related Party Transactions |
Note 5 - Related Party Transactions Notes Payable
| | | |
| | September 30, 2022
| | June 30, 2022
|
Fair value of unsecured notes payable to seller of Concepts and Solutions, a related party, bearing interest at 3% per year, payable in annual installments through November 30, 2021. Payment is subject to adjustment based on the achievement of minimum gross revenues and successful completion of certain pre-acquistion withholding tax issues of Concepts and Solutions. | $ 1,030,079 | | $ 1,030,079 |
| | | |
|
Note payable to a stockholder in which the note principal plus interest at 15% is payable the earlier of 60 days after invoicing a certain customer, or April, 2022 due to an extension granted by the lender. On December 23, 2021, an amendment extended the maturity to March 30, 2025, changed the interest rate to 10% with monthly payments of principal and interest of $8,823 beginning in June 2022. The note is collateralized by a security interest in a certain customer purchase order. Monthly payments were deferred by the lender. | 385,000 | | 385,000 |
| | | |
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Note payable related to acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations, upon the shareholder's resolution of a pre-acquisition liability with a bank.
| -
| | 55,000 |
| | | |
|
Long term note bearing interest at 6% and maturing December 31, 2024 and other short-term payables due to stockholders and related parties | 807,133 | | 355,538 |
| | | |
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Total Related Party Notes Payable
| 2,222,212 | | 1,825,617 |
| | | |
|
Current Portion of Related Party Notes Payable
| 1,183,755 | | 1,238,755 |
| | | |
|
Long-term Portion of Related Party Notes Payable
| $ 1,038,457 | | $ 586,862 |
As of September 30, 2022, related party notes payable maturities are as follows: | |
Period ending September 30,
|
|
2023
| $1,183,755
|
2024
| 105,876
|
2025
| 932,581
|
| $2,222,212
|
Related Party Leases The Company leases property used in operations from a related party under terms of a financing lease. The term of the lease expired on December 31, 2021 and is continuing on a month to month basis. The monthly lease payment is $9,664 plus maintenance and property taxes, as defined in the amended lease agreement. Rent expense for this lease was $28,992 and $28,992 for the three months ended September 30, 2022 and 2021, respectively. Other Related Party Agreements A related party collateralizes the Company's short-term note with a certificate of deposit in the amount of $274,900, held at the same bank. The related party will receive a $7,500 collateral fee for this service (see Note 4).
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