12. Loans Payable to Related Parties

		September 30, 2025		December 31, 2024
Directors	$	48,500	$	48,500
Officers		32,073		23,533
Shareholders		-		3,000
Haute Inc.		667,782		646,121
Total	$	748,355	$	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 nine-month periods ended September 30, 2025, $763 and $2,041 (2024-$610 and $1,886) 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 $430,980 (C$600,000) bearing interest at 13% per annum, due June 5, 2024. The net proceeds were $241,704 (C$336,495) after deducting outstanding interest on existing mortgages for a wholly owned subsidiary, 1684567, and other disbursements in the amount of $146,652 (C$204,165), a financing fee in the amount of $12,929 (C$18,000) plus the applicable harmonized sales taxes of $1,681 (C$2,340). In addition, six months of interest in the amount of $28,014 (C$39,000) was capitalized.

On January 9, 2024, the Company received a loan from Haute Inc., in the amount of $236,802 (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 $14,007 (C$19,500) for six months and a financing fee of $6,465 (C$9,000) plus the applicable harmonized sales taxes of $840 (C$1,170) amounted to $215,490 (C$300,000).

During the three and nine-month periods ended September 30, 2025, $21,936 (C$30,214) and $64,828 (C$90,643) (2024-$21,333; C$29,098 and $63,074; C$85,803) 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.

During the nine-month period ended September 30, 2025, advances on loans payable to related parties was $28,020 (C$39,178) (2024-$276,253 (C$375,803) respectively, and repayment of loans payable to related parties was $17,880 (C$25,000) (2024-$10,205 (C$13,882) respectively.