Related Party Transactions |
3 Months Ended |
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Mar. 31, 2024 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Note 12. Related Party Transactions
Revenue and Accounts Receivable
The Company recognized revenue of $205,044 and $348,903 for the three months ended March 31, 2024 and 2023 and accounts receivable of $172,030 and $67,447 and contract liability of $43,173 and $43,173 as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023, the Company owed $886,331 and $677,039 to Craig Technical Consulting, Inc. Advances are unsecured, due on demand and non-bearing-interest.
Cost of Revenue and Operating expense
For the three months ended March 31, 2024 and 2023, the Company recorded cost of revenue to Craig Technical Consulting, Inc. of $167,544 and $297,560 and general and administrative expense of $0 and $24,363, 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 November 30, 2024.
During the three months ended March 31, 2024 and 2023, the Company recorded professional services of $37,637 and $19,634, 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 $4,570 from inception through January 31, 2022, $4,707 from February 1, 2022 to January 31, 2023, and $4,847 from February 1, 2023 to January 31, 2024. On February 1, 2024, the Company extended the month-to-month Sublease agreement. 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 three months ended March 31, 2024 and 2023, the Company recorded $18,331 and $14,401 to lease expenses.
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