RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2023

RELATED PARTY TRANSACTIONS.

RELATED PARTY TRANSACTIONS

NOTE 2 – RELATED PARTY TRANSACTIONS

On March 23, 2022, the Company executed an unsecured Revolving Promissory Note (the “Shareholder Note”), in the principal amount of up to $200,000 payable to Steven N. Bronson, the Company’s Chairman of the Board, President and Chief Executive Officer, pursuant to which Mr. Bronson may make loans to the Company from time to time. The Shareholder Note has a maturity date of March 23, 2027, and provides for interest to accrue on the unpaid principal at a rate of eight percent (8)% per annum (calculated on the basis of a 360-day year), compounded quarterly and payable quarterly on the last business day of the calendar quarter. The Shareholder Note may be prepaid by the Company at any time without penalty. The Company borrowed an initial amount of $20,000 under the Shareholder Note on March 23, 2022, and an additional $10,000 on June 2, 2022.

On September 27, 2022, the Company executed an unsecured Revolving Promissory Note (the “Qualstar Note”), payable to Qualstar Corporation (“Qualstar”). Mr. Bronson, the Company’s Chairman of the Board, President and Chief Executive Officer, is the President and CEO of Qualstar Corporation, as well as its largest shareholder. Under the terms of the Qualstar Note, Qualstar may (but is not required to) make loans to the Company from time to time upon request by the Company, up to a maximum principal amount of $200,000 outstanding at any time. The Note may be prepaid by the Company at any time without penalty and is repayable on demand by Qualstar on or after December 31, 2024. The Note provides for interest to accrue on the outstanding principal balance at a rate of ten percent (10)% per annum (calculated on the basis of a 360-day year), compounded and payable quarterly. The Company borrowed an initial amount of $20,000 under the Qualstar Note on September 27, 2022, and an additional $30,000 on December 1, 2022. The Company borrowed an additional $25,000 under the Qualstar Note on June 6, 2023.

During the three and nine months ended September 30, 2022 and September 30, 2023, the following amounts were payable under all loans:

	Note Payable to				Note Payable to
	Steven N. Bronson				Qualstar Corporation
	Principal		Interest		Principal		Interest
Balance December 31, 2021	$	—	$	—
Additions		20,000		40
Cash Payments		(—)		(—)
Balance March 31, 2022	$	20,000	$	40
Additions		10,000		826
Cash Payments		(—)		(—)
Balance June 30, 2022	$	30,000	$	866
Additions		—		837	$	20,000	$	13
Cash Payments		(—)		(—)		(—)		(—)
Balance September 30, 2022	$	30,000	$	1,703	$	20,000	$	13
Balance December 31, 2022	$	30,000	$	1,782	$	50,000	$	629
Additions		—		669		—		1,174
Cash Payments		(—)		(—)		(—)		(—)
Balance March 31, 2023	$	30,000	$	2,451	$	50,000	$	1,803
Additions		—		727		25,000		1,763
Cash Payments		(—)		(—)		(—)		(—)
Balance June 30, 2023	$	30,000	$	3,178	$	75,000	$	3,566
Additions		—		799		—		2,081
Cash Payments		(—)		(—)		(—)		(—)
Balance September 30, 2023	$	30,000	$	3,977	$	75,000	$	5,647