PROMISSORY NOTE RECEIVABLE

9 Months Ended

Jun. 30, 2019

Receivables, Other, Related Parties and Retainage [Abstract]

PROMISSORY NOTE RECEIVABLE

PROMISSORY NOTE RECEIVABLE

On March 27, 2019, the Company made a $300,000 loan to Mr. Terry Johnston, an affiliate of the Company through his controlling interests in certain entities within our land investment segment partnerships, and the Company was given an unsecured promissory note in return. The maturity date of the note is July 31, 2019, whereupon all principal and interest outstanding is due. Interest accrues at 8% per annum on the unpaid principal amount. In the event of default, the interest rate increases by 5%. The note includes a limited joinder that specifies that in the event of default, any fees otherwise due to Nearco, Inc., an entity controlled by Mr. Johnston, by Kaupulehu Developments may be applied to amounts due under the note. The note receivable was included in “Other current assets” in the Condensed Consolidated Balance Sheet as of June 30, 2019. Subsequent to June 30, 2019, the promissory note receivable, including accrued interest, was paid in full.