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CONVERTIBLE NOTE PAYABLE TO RELATED PARTY
6 Months Ended
Jun. 30, 2025
Convertible Note Payable To Related Party  
CONVERTIBLE NOTE PAYABLE TO RELATED PARTY

(8) CONVERTIBLE NOTE PAYABLE TO RELATED PARTY

 

The Company entered into an unsecured promissory note (the “Convertible Note”) effective February, 18, 2025,with David Lazar, a stockholder holding more than 10% of the Company’s outstanding shares and a former officer and director. Under the terms of the Convertible Note, the Company agreed to pay Mr. Lazar a principal amount of $300,000, bearing interest at an annual rate of approximately 4.34%, with the full principal and interest balance due on or before December 31, 2025. Upon stockholders’ approval, the Convertible Note will automatically convert into shares of the Company’s common stock at a conversion price of $0.25 per share.

 

The Convertible Note to related party is accounted for as a single liability in accordance with Accounting Standards Update (ASU) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. As of June 30, 2025, the Convertible Note was recorded at an aggregate amount of $305,425, which includes $5,425 of accrued interest.