RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 6–RELATED PARTY TRANSACTIONS

During July 2017, the Company entered into an agreement with Quarta Rad, LTD (“QRR”), a company in Russia, which is owned by the Company’s minority shareholder to develop and update software for a new device for $180,000. The development contract ended December 31, 2019. The amount due in connection with this agreement as of September 30, 2024, and December 31. 2023, is $91,850 and $91,850, respectively. The balances are due on demand and do not incur interest. In April 2024, the minority shareholder sold their total shares and is no longer affiliated with the Company.

In May 2022, the Company began using Star Systems Corporation (“STAR”:), a Japanese entity owned by the Company’s majority shareholder, as an intermediary to purchase inventory from QRR. The Company owes Star $42,502 and $42,502 on September 30, 2024 and December 31, 2023, for purchasers and inventory and upgrades from 2022. The balances are due on demand and do not incur interest.

In April 2021, the Company began compensating its CEO, who is the majority shareholder. The Company expensed $8,000, $24,000, $8,000 and $24,000 for the three and nine months ended September 30,, 2024, and 2023, respectively. As of September 30, 2024 and December 31, 2023 the Company has accrued $112,000 and $88,000, respectively for this compensation, included within accounts payable and accrued expenses on the accompanying balance sheets.

From time to time the CEO advanced funds for operations. As of September 30, 2024 and December 31, 2023, is due $125,378 and $56,125, respectively, for expenses paid on behalf of the Company. The balances are due on demand and do not accrue interest.

Sellavir recognized $10,000, $10,000, $0 and $102,000 of revenue for the three and nine months ended September 30, 2024, and 2023, respectively. Revenue for the three months ended September 30, 2024 is in connection with a licensing agreement. The services prior are related to services to STAR to develop software. The license agreement relates to software customization for several of Star’s clients to improve their call center platforms.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements