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Related Party Transactions
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

3. Related Party Transactions

 

The Company has two demand notes receivable from shareholders related to the sale of common stock on January 1, 2016. Both notes’ initial balances were $506,400, with interest calculated monthly based on applicable federal rates. No payments have been received on the notes. Since repayment is not assured, the Company provided an allowance for the entire balance of principal and interest as of December 31, 2019. The current allowance is $1,154,541 as of December 31, 2023. The current loan balances are as follows:

 

   Loan   Interest   Interest 
December 31, 2023  Receivable   Receivable   Income 
Shareholder 1  $506,400   $70,938   $23,867 
Shareholder 2   506,400    70,803    23,867 
    1,012,800    141,741    47,734 
Allowance for Collection Risk   (1,012,800)   (141,741)   (47,734)
Net Balance  $—   $—   $— 

 

   Loan   Interest   Interest 
December 31, 2022  Receivable   Receivable   Income 
Shareholder 1  $506,400   $47,071   $11,523 
Shareholder 2   506,400    46,936    11,523 
    1,012,800    94,007    23,046 
Allowance for Collection Risk   (1,012,800)   (94,007)   (23,046)
Net Balance  $—   $—   $— 

 

The Company has loans payable to shareholders related to funding needs for operations. The current loan details for all related party loans are as follows:

 

               Interest &     
       Interest   Loan   Service Fee   Interest 
December 31, 2023  Due Date   Rate   Balance   Accrued   Paid 
Shareholder 1   June, 2019    15.00%  $—   $—   $10,047 
Shareholder 1   June, 2019    15.00%   —    —    27,056 
Other Convertibles   Various    5.00%   —    66,648    — 
Total            $—   $66,648   $37,103 

 

               Interest &     
       Interest   Loan   Service Fee   Interest 
December 31, 2022  Due Date   Rate   Balance   Accrued   Paid 
Shareholder 1   June, 2019    15.00%  $20,051   $8,161   $— 
Shareholder 1   June, 2019    15.00%   38,000    23,481    — 
Other Convertibles   Various    5.00%   —    66,648    — 
Total            $58,051   $98,290   $— 

 

Mr. Bradley Mitch Watkins, Director, provided certain sales, marketing and commercialization consulting services to the Company prior to his appointment to the Board of Directors. For the years ended December 31, 2023 and 2022, the Company paid Mr. Watkins $11,083 and $3,523, respectively. No amounts were owed to Mr. Watkins as of December 31, 2023 and 2022.

 

The Company’s former Chief Financial Officer is contracted for services through a third-party public accounting firm. He is the firm’s managing partner and majority shareholder. The firm is engaged by the Company to provide accounting and tax services on a continuous basis. Fees paid for services were $312,803 and $116,542 for the years ended December 31, 2023 and 2022, respectively. The Company owed RBSK for open invoices of $84,279 and $68,142 that are included in accounts payable as of December 31, 2023 and 2022, respectively.

 

 

Neuraxis, Inc.

Notes to Financial Statements