Related Party Transactions |
6 Months Ended |
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Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Note 12. Related Party Transactions
Revenue and Accounts Receivable
The Company recognized revenue of $647,743 and $297,816 for the six months ended June 30, 2025 and 2024 and accounts receivable of $1,037,606 and $641,376 and contract asset and contract liability of $107,013 and $46,953 as of June 30, 2025 and December 31, 2024, respectively, from contracts entered into by Craig Technical Consulting, Inc, a principal stockholder, and subcontracted to the Company for four customers.
Accounts Payable
As of June 30, 2025 and December 31, 2024, the Company owed $774,600 and $673,743 to related parties of which $527,476 in both periods relates to advances from Craig Technical Consulting, Inc. which are unsecured, due on demand and non-bearing-interest.
As of June 30, 2025 and December 31, 2024, the Company recorded accounts payable of $62,500 and $92,500, respectively, related to Q2 2025 and Q4 2024 Board of Director compensation payments.
Cost of Revenue
For the six months ended June 30, 2025 and 2024, the Company recorded cost of revenue to Craig Technical Consulting, Inc. of $356,154 and $214,002, respectively.
Professional Service Agreements
A Professional Services Agreement, effective November 15, 2021, was made, between the Company and Craig Technical Consulting, Inc. The period of performance for this Agreement was December 1, 2021, through November 30, 2022. The agreement was amended, and the term of agreement was extended to June 30, 2025.
During the six months ended June 30, 2025 and 2024, the Company recorded professional services of $94,082 and $79,465, respectively.
Sublease
On August 1, 2021, the Company entered into a Sublease Agreement with its related party and a principal shareholder (“Sublandlord”), whereby the Company shall sublease certain offices, rooms and shared use of common spaces located at 150 Sykes Creek Parkway, Merritt Island, FL. The Lease is a month-to-month lease and may be terminated with 30 days’ notice to the Sublandlord. The monthly rent shall be $4,618.03 from February 1, 2024 to January 31, 2025, $4,756.57 from February 1, 2025 to January 31,2026 and $4,899.27 from February 1, 2026 to January 31, 2027. A common area maintenance fee (CAM) will be charged in addition to the monthly rent. During the six months ended June 30, 2025 and 2024, the Company recorded $41,163 and $38,555 directly related to this short-term month to month lease to lease expenses.
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