RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Jun. 30, 2025 | |
| RELATED PARTY TRANSACTIONS | |
| RELATED PARTY TRANSACTIONS | NOTE 16. RELATED PARTY TRANSACTIONS
During the years ended June 30, 2025 and 2024, related party transactions were as follows:
As of June 30, 2025, the Company maintains its corporate address in at 2310 York Street, Suite 200, Blue Island, IL, 60406. This space is provided by the Company’s Chairman, Charles Everhardt, a related party, on a rent free basis at the present time. The Company does not currently have a lease for this space but expects to enter into a month-to-month office lease for this space.
As of June 30, 2025, per the Company’s Agreement with TicketBash, the Company has agreed to create a new subsidiary (the “New Subsidiary”) jointly with Charles Everhardt, the Company’s Chairman of the Board at the time of the Closing, for the potential energy and data center business of Mr. Everhardt. The Company is expected to retain approximately five percent (5%) ownership of the New Subsidiary, and all existing liabilities from the Company shall be assumed by the New Subsidiary. Company shall, post-Closing, determine the budget for spinning off the New Subsidiary, and the Company and Mr. Everhardt shall split the costs of the spin-off 50/50, each contributing their cash for those expenses into the New Subsidiary’s bank account, up to a maximum contribution of Fifty-Thousand Dollars ($50,000). Once the New Subsidiary has filed for the spin- off, the Company shall no longer be responsible for any capital commitments to or other obligations of the New Subsidiary.
On February 1, 2025, a company owned by the Company’s Chairman, and the Company entered into a lease for commercial property which the Company intended to be a tenant. On February 1, 2025 the Company and another company owned by the Company’s Chairman, and the Company entered into a lease for the same commercial property, for which the Company sub-leased the leased space to Mr. Everhardt’s company. These transactions are meant to be a passthrough and both of these leases have been postponed and the lease terms have not begun.
On December 17, 2024, the Company issued 6,500,000 shares of common stock to Red Halo, LLC, the limited liability company of Company CEO Michael Friedman, in satisfaction of accrued compensation of $325,000 owed to Mr. Friedman and his entity by the Company.
On January 15, 2024, the Company’s CEO, Michael Friedman, was granted options to purchase 3,750,000 shares of the Company’s common stock at an exercise price of $0.50/share, exercisable on a cashless basis and for a seven-year term (the “Options”), in consideration of prior services rendered by Mr. Friedman to the Company. The Options shall be issued to Mr. Friedman’s limited liability company, Red Halo, LLC.
As of June 30, 2025, a company founded and partially owned by the Company’s Chairman, Charles Everhardt, has been assigned the $3,750,000 in payables to a Company owned by Charle’s Everhardt for the Vitality Card, this amount included $750,000 which was included in accounts payable and accrued expenses as of June 30, 2024.
The above amounts and terms are not necessarily what third parties would agree to. |