12. Loans Payable to Related Parties

		June 30, 2025		December 31, 2024
Directors	$	48,500	$	48,500
CFO		26,131		23,533
Shareholders		-		3,000
Haute Inc.		681,448		646,121
Total	$	756,079	$	721,154

The loans owing to directors were received by the Company on June 6, 2022, March 16, 2023 and June 21, 2024, are unsecured, bearing interest at 5% per annum and due on demand. During the three and six-month periods ended June 30, 2025, $505 and $1,278 (2024-$685 and $1,276) respectively, in interest was incurred on the loans owing to directors.

On December 5, 2023, the Company received a loan from Haute Inc., in the amount of $439,800 (C$600,000) bearing interest at 13% per annum, due June 5, 2024. The net proceeds were $246,651 (C$336,495) after deducting outstanding interest on existing mortgages for a wholly owned subsidiary, 1684567, and other disbursements in the amount of $149,653 (C$204,165), a financing fee in the amount of $13,194 (C$18,000) plus the applicable harmonized sales taxes of $1,715 (C$2,340). In addition, six months of interest in the amount of $28,587 (C$39,000) was capitalized.

On January 9, 2024, the Company received a loan from Haute Inc., in the amount of $241,648 (C$329,670) bearing interest at 13% per annum due July 9, 2024. The proceeds received on January 9, 2024 net of capitalized interest of $14,294 (C$19,500) for six months and a financing fee of $6,507 (C$9,000) plus the applicable harmonized sales taxes of $858 (C$1,170) amounted to $219,900 (C$300,000).

During the three and six-month periods ended June 30, 2025, $21,875 (C$30,214) and $42,892 (C$60,429) (2024-$20,272; C$27,748 and $41,741; C$56,705) respectively, in interest was incurred on the two loans from Haute Inc.

In addition, on January 11, 2024, Travellers converted $101,130 (C$135,600) of accounts payable into 809,044 common shares of the Company at the closing trading price immediately prior to the conversion. There was no gain or loss on this conversion.