Quarterly report [Sections 13 or 15(d)]

Note 22 - Related Party Transactions

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Note 22 - Related Party Transactions
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 22 – RELATED PARTY TRANSACTIONS

 

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Company's Board of Directors.

 

During the three months ended March 31, 2025, the Company incurred engagement fees totaling $0.23 million pursuant to the engagement letter with Adnant, LLC ("Adnant") dated August 12, 2022, as subsequently amended, for executive level consulting and related business support services (the "Engagement"). On January 1, 2025, the Company entered into an Amended and Restated Engagement Letter with Adnant wherein the term of the Engagement was extended to December 31, 2025 and the monthly service fee was decreased from $0.25 million to $0.08 million, which shall be payable monthly subject to the Company having a sufficient cash balance.

 

On January 3, 2023, the Company entered into a sublease agreement with Adnant for use of the office building located in Downey, California as the Company's corporate headquarters. The lease term commenced on February 1, 2023 and expires on May 31, 2025, upon which the sublease shall automatically continue on a month-to-month basis thereafter. Total rent expense incurred with the related party was $27,968 and $34,242 for three months ended March 31, 2025 and 2024, respectively.