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Related Party Transactions
 9 Months Ended
Sep. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 11. Related Party Transactions

 

General and Administrative Costs

 

There are certain general and administrative costs incurred by DSS, a related party, on behalf of the Company which are passed through to the Company on a monthly basis. These costs consist of primarily payroll costs for certain DSS employees and are allocated based on estimated time spent on behalf of the Company. Beginning in January 2024, these costs are approximately $21,000 per month. For the nine months ended September 30, 2024, the Company incurred approximately $187,000 in related expenses. Beginning October 2024, these costs are approximately $26,000 per month. For the nine months ended September 30, 2025, the Company incurred approximately $238,000 in related expenses.

 

 

Impact Biomedical, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

 

Note payable, related party

 

On December 31, 2020, and later amended, the Company executed a Revolving Promissory Note (“Note”) with DSS, a related party, which accrues interest at a rate of 4.25% and is due in full at the maturity date of September 30, 2030. The Note was further amended on July 24, 2024 with an effective date of September 16, 2024 to i) allow the Company to pay certain principal and/or interest payments owing under the repayment terms in an exchange for potential of equity in the Company, ii) change the quarterly interest due dates to the last day of each calendar quarter (i.e. December 31, March 31, September 30 and September 30), iii) to adjust the On Demand feature so that it starts after the 24th month, iv) continue the planned repayment program commencing on the 37th month and on the last day of each month thereafter through August 31, 2030 to pay a fixed monthly payment of $126,381, v) to continue the scheduled maturity date of September 30, 2030, and vi) adjusts the interest rate to be the WSJ Prime Rate plus 0.50%. This Note is secured by the assets of the Company. As of September 30, 2025, the outstanding balance, inclusive of interest was $22,881,000 (net of change in fair value of the Note of $13,210,000). The $22,881,000 is recorded in Note payable, related party at September 30, 2025. As of December 31, 2024 the outstanding balance, inclusive of interest was $8,878,000 (net of change in fair value of the Note of $5,670,000). The $8,878,000 is recorded in Note payable, related party at December 31, 2024.