Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 5: RELATED PARTY TRANSACTIONS

On July 6, 2020, the Company entered into a project development agreement with Adaptive Tech Services (“ATS”), whereby ATS assisted the Company in the development of various technological platforms ranging from software to other digital applications to be integrated with the Company’s products. ATS is owned and operated by the spouse of a former member of the Company’s board of directors and the Chairperson of the Company’s audit committee. The Company recorded project development expenses of $1,058,000 and $2,210,000 for the years ended December 31, 2023 and 2022, respectively. The Company recorded an impairment expense of $4,093,532 and $0 for the development of these technological platforms for the years ended December 31, 2023 and 2022, respectively. The amount due and payable to the related party at December 31, 2023 and 2022 was $1,970,100 and $1,100,000, respectively.

On February 15, 2019, the Company entered into an agreement with Cyberduction, whereby Cyberducton provided the Company with outside services managing the Company’s website, information technology support, customer services, and external show and convention coordination for a fixed fee of $57,500 per quarter. The principal owner of Cyberduction is a sibling of our Company’s Chief Executive Officer. The Company recorded an expense of $230,000 for each of the years ended December 31, 2023 and 2022, respectively. The amount due and payable to Cyberduction was $0 at December 31, 2023 and 2022.

On September 01, 2020, the Company entered into an agreement with Zgal Amazon Services (“Zgal”), whereby Zgal provided the Company with outside services managing the setup of the Company’s Amazon presence in multiple countries in Europe and USA including Amazon pricing, logistics and inventory coordination. The principal owner of Zgal is a sibling of our Company’s Chief Financial Officer. For the years ended December 31 2023 and 2022, the Company recorded an expense of $245,000 and $420,000, respectively, for services provided by Zgal. The amount due and payable to Zgal was $0 at December 31, 2023 and 2022.

The Company recorded bonus expense of $800,000 and $880,000 payable to management team for the years ended December 31, 2023 and 2022, respectively. Bonus payable totaled $1,680,000 and $880,000 as of December 31, 2023 and 2022, respectively.