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Related Party Transactions
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 13 – RELATED PARTY TRANSACTIONS

 

During the three months ended March 31, 2025 and 2024, the Company accrued $30,630 and $31,311, respectively, for dividends on the Series A preferred stock held by Mr. Yakov. As of March 31, 2025 and December 31, 2024, total accrued dividends on the Series A preferred stock due to Mr. Yakov is $574,139 and $543,509, respectively.

 

On April 8, 2024, the Company entered into Amendment No. 1 (the “Amendment”) to the Employment Agreement with Mr. Yakov (the “Yakov Agreement”). The Amendment corrected a ministerial error in the terms relating to the exercise price of stock options awarded and automobile allowance for Mr. Yakov. The Amendment affirmed that the exercise price of stock options issued under the Agreement (the “Stock Options”) shall have a per share exercise price equal to One Cent ($0.01) and expire ten years after the date of grant. Each Stock Option granted shall become exercisable as follows: 50% upon the grant date, then 25% upon each of the second and third anniversary of the date on which it is granted. In addition, the notices provision of the Yakov Agreement was amended to the reflect the current business address of the Company.

 

On August 12, 2024, the Company entered into an agreement with Yakov Holdings LLC, an entity controlled by Mr. Yakov (the “Yakov LLC”) whereby the Yakov LLC committed to loan to the Company up to Five Million Dollars ($5,000,000) (the “Yakov LLC Loan”). The Yakov LLC Loan is revolving in nature, allowing the Company to borrow, repay, and re-borrow amounts under the terms and conditions set forth herein, provided that the total outstanding amount shall not exceed Five Million Dollars ($5,000,000). The interest rate of the Yakov LLC Loan is 12% and it matures on August 12, 2025. In addition, the Yakov LLC Loan is secured by a first priority security interest for the benefit of the Yakov LLC over all of the assets of the Company. As of March 31, 2025 and December 31, 2024, the amount due to Yakov LLC is $1,183,960 and $1,203,960, respectively. As of March 31, 2025 and December 31, 2024, there is $225,319 and $0, of accrued interest due.

 

During the three months ended March 31, 2025 and 2024, Mr. Yakov made payments on behalf of the Company in the amount of $18,881 and $182,150, respectively.