3. Related Party Transactions

3 Months Ended

Mar. 31, 2024

Notes

3. Related Party Transactions

3. Related Party Transactions

In addition to items disclosed in Notes 6, the Company had additional related party transactions during the three months ended March 31, 2024 and 2023.

Historically, the Company has received funds from borrowings on notes payable and advances from related parties and officers of the Company to cover operating expenses. Related parties include the officers and directors of the Company and a significant shareholder holding in excess of 10% of the Company’s outstanding shares.

During the three months ended March 31, 2024 and 2023, David Tobias, the Company’s chief executive officer and director, loaned $-0- and $11,060, respectively to the Company for notes payable bearing interest at the rate of 5% per annum due on December 31, 2023. The note payable totaled $47,921 at March 31, 2024 and December 31, 2023, respectively.

During the three months ended March 31, 2023, the Company and Cathy Carroll, director, entered into a note payable for $15,000 for compensation due her for services. Ms. Carroll’s note bears interest at 5% per annum and is due December 31, 2024. The note payable totaled $124,250 and $109,250 at March 31, 2024 and December 31, 2023, respectively.

The Company also has an outstanding loan in the amount of $4,000 to a director of the Company.  It accrues interest at 5% per annum.

During the three months ended March 31, 2024 and 2023, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 8% per annum in the amounts of $911 and $50, respectively.

The following tables reflect the related party note payable balances. 

	Related party notes	Accrued interest	Total
	March 31, 2024
David Tobias, CEO & Director	$47,920	$16,788	$64,708
New Compendium, greater than 10% Shareholder	-	1,906	1,906
Cathy Carroll, Director	124,250	986	125,236
Other Affiliates	4,000	1,200	5,200
Totals	$176,170	$20,880	$197,050

	Related party notes	Accrued interest	Total
	December 31, 2023
David Tobias, CEO & Director	$47,920	$13,779	$61,699
New Compendium, greater than 10% Shareholder	-	1,906	1,906
Cathy Carroll, Director	109,250	986	110,236
Other Affiliates	4,000	1,200	5,200
Totals	$161,170	$17,871	$179,041

At March 31, 2024 and December 31, 2023, the Company has a balance due from MJ Harvest, Inc., with whom the Company plans to merge, of $75,054 (see Note 9). The amount is included in advances to related party on the condensed consolidated balance sheets. The funds were advanced to MJ Harvest, Inc. to cover operating expenses.

The following tables reflect the related party transactions. 

	March 31, 2024	March 31, 2023
Director fee	$11,875	$11,875
Outside services	59,375	59,375
Management fee	17,364	30,713