Note 6 makes my head spin, Is this a donation or a capital contribution? If it's a donation, is this part of the $1,825,526 in revenue? (SPZI is not a Charitable organization, so donations should be considered taxable income). It would be interesting to see how Transactions Epidemiologic Solutions Corporation rationalized this as a "donation". If its a capital contribution, what equity stake did Transactions Epidemiologic Solutions Corporation receive?
Note 6. Related Party Transactions Epidemiologic Solutions Corporation (ESC), a 501 C (3) charity has made donations totaling $714,463 and $71,116 in June 30, 2024 and December 31, 2023, respectively. The capital contributions were to assist the Company with operating capital.
"Donations are given without return consideration. This lack of return consideration means that, in common law, an agreement to make a donation is an "imperfect contract void for want of consideration."[7] Only when the donation is made does it acquire legal status as a transfer or property"
"A capital contribution is when a business owner, partner, or shareholder gives money or property to the company's capital. In exchange, the contributor receives an equity stake in the business, such as common stock, partnership interests, or limited liability company interests."
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