Related Party Transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions

Related Party Transactions

 3. Related Party Transactions

On January 3, 2012, we entered into a perpetual license agreement (the “Perpetual License”) with Mastermind Marketing, Inc. (the “Licensor”), which provides for licenses of trademarks, internet domains, and certain intellectual property as defined in the Perpetual License. The Licensor is one of our members and its chief executive officer is also our chief executive officer. The Perpetual License, which may be terminated at any time by either party, is effective January 3, 2012 and provides for aggregate cash payments of $2,100,000 over the calendar years from 2019 through 2039 with no further payments required after December 31, 2039. The Company has recorded amortized expenses related to the license of $27,000 and $81,000 for the three and nine months ended September 30, 2024, respectively and $27,000 and $81,000 for the three and nine months ended September 30, 2023, respectively (Note 5).

During the three and nine months ended September 30, 2024, and 2023, we made payments to our three members pursuant to the terms of our operating agreement, as amended, for services rendered to us. The Company recorded expenses to our three members during the three and nine months ended September 30, 2024, aggregating $157,681 and $572,326, and for the three and nine months ended September 30, 2023, aggregating $280,577 and $821,366, respectively. As of September 30, 2024 and December 31, 2023 we owed $0 to our three majority stockholders.