RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 31, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5 - RELATED PARTY TRANSACTIONS

Related Party agreements and fees

For the three months ended December 31, 2024, and 2023, the Company recorded expenses to related parties in the following amounts:

	Three months ended December 31,
	2024		2023
Management fees, Chief Executive Officer (CEO)	$	45,000	$	45,000
President and Chief Operating Officer (COO)		45,000		45,000
Stock-based compensation expense, officers		123,783		123,208
Office rent and expenses		7,955		-
Total	$	221,738	$	213,208

Effective January 1, 2023, the monthly fee for the CEO was $15,000.

Effective February 1, 2023, the Company entered a Consulting Executive Officer Agreement with a three- year term to an entity (SGG World LLC or "SGG") to provide the services of a Chief Operating Officer (the “COO”) of the Company. On October 1, 2023, the BOD also appointed the COO as the President. Pursuant to the agreement, the Company agreed to a monthly fee of $10,000, and the issuance of 250,000 common shares per month, to be issued semi-annually. The monthly fee was increased to $15,000 per month effective September 1, 2023. For the three months ended December 31, 2024, and 2023, the Company recorded expenses of $18,450 and $17,875, respectively, related to the 250,000 common shares per month, calculated based on the closing market price of the common stock on the last day of each month.

The Company granted an option to SGG purchase 10,000,000 shares of the Company’s common stock at $0.02 per share with an expiry date of July 1, 2025 (the "CYCA Option”). The CYCA option vests at the rate of 25% beginning on the first six-month anniversary of the agreement, as well as a warrant to purchase 250,000 shares of the Reticulate Micro common stock the Company owns (the “RM Warrant”). The RM Warrant has an exercise price of $1.00 per share and an expiry date of July 1, 2025. The Company valued the CYCA Option at $639,543 based on the Black-Scholes option pricing method and will be amortized through the term of the agreement, and accordingly, $53,295 is included in stock-based compensation expense-related party for the three months ended December 31, 2024, and 2023, respectively. The Company valued the RM Warrant at $624,458 based on the Black-Scholes option pricing method and will be amortized through the term of the agreement, and accordingly, $52,038 is included in stock-based compensation expense-related party for the three months ended December 31, 2024, and 2023, respectively.

Beginning in April 2024, the Company agreed to rent office space for the COO at $2,575 per month plus incidental expenses, on a month to month basis, accordingly, $7,955 is included in related party expenses for the three months ended December 31, 2024.

Related party liabilities

As of December 31, 2024, and September 30, 2024, the Company owes $423,997 and $443,093, respectively, to related parties as follows:

	December 31, 2024		September 30, 2024
Management fees, Chief Executive Officer (CEO)	$	110,000	$	110,000
Bonus, CEO		48,040		68,040
Stock to be issued President and COO		227,085		208,635
Accounts payable, President and COO		8,872		26,418
Fees, bonus, and accounts payable, former CTO		30,000		30,000
Total	$	423,997	$	443,093