NOTE

10.

NOTES PAYABLE

Notes payable at

December 31, 2019

and

2018,

consist of the following:

	Interest Rates	Average Term	2019			2018
Interest-bearing amounts due on traditional mortgages on real estate held through Mt Melrose, LLC	4.38% - 5.75%	14 years	$	—		$	4,505,139
Interest-bearing amounts due on hard money loans on real estate held through Mt Melrose, LLC	10.00% - 13.00%	2 years		—			2,379,851
Interest-bearing amounts due on promissory notes	10.00%	1 year		—			131,279
Non-interest-bearing amount due on promissory notes	0.00%	1 year		—			218,270
Equipment and vehicle capital leases and loans acquired by HVAC Value Fund, LLC	0.00% - 4.90%	5 years		—			55,797
Vehicle loans through HVAC Value Fund, LLC	5.99%	5 years		—			53,638
Interest-bearing amount due on promissory note through EDI Real Estate, LLC	5.60%	15 years		373,425			384,304
Interest-bearing amount due on real estate held for investment through EDI Real Estate, LLC	6.00%	5 years		137,600			137,600
Less notes related to discontinued operations				—			(209,436	)
Less accrued interest				—			(134,623	)
Less current portion				(11,453	)		(1,002,965	)
Long-term portion			$	499,572		$	6,518,854

The timing of future payments of notes payable are as follows as of

December 31, 2019:

2020	$	11,453
2021		12,181
2022		12,891
2023		151,242
2024 and thereafter		323,258
Total	$	511,025

As of

December 31, 2019,

lines of credit remain open through the home services segment. The line of credit that existed as of

December 31, 2018

through the home services segment was held with Steven L. Kiel, an ENDI director and our principal executive officer. The Company assumed this debt, which was paid off during the year ended

December 31, 2019

through the issuance of Company stock. Additional debt held through the home services segment as of

December 31, 2018,

included loans for various vehicles and equipment. Two vehicle loans were entered into during the quarter ended

March 31, 2018.

These loans required monthly payments through

May 2023

and held annual interest rates of

5.99%.

As of

December 31, 2019,

all of these loans have been assumed by Rooter Hero, as a result of the divestiture of the home services segment. See Note

for more information.

During the quarter ended

September 30, 2017,

EDI Real Estate, LLC, as a borrower, issued

two

promissory notes, each secured by a property held for investment. These notes carry annual interest rates of

6%,

pay interest quarterly, and are due

September 15, 2022

with early payoff permitted. Additionally, during the quarter ended

September 30, 2018,

EDI Real Estate, LLC issued a promissory note secured by additional properties held for investment. This note carries an annual interest rate of

5.6%

and fully matures on

September 1, 2033

with early payoff permitted. The interest rate on this note is subject to change once each

five

-year period based on an index rate plus a margin of

2.750

percentage points. The index rate is calculated as a monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of

five

years.

During the quarter ended

March 31, 2019,

the Company issued a promissory note secured by the commercial warehouse held for resale. The note carried an annual interest rate of

8%,

paid interest quarterly, and was due upon successful sale of the warehouse with early payoff permitted. Accordingly, this note was paid off during

December 2019,

in conjunction with the sale of the warehouse.

With respect to outstanding debt secured by the real properties acquired by Mt Melrose, LLC, these notes began to mature during the quarter ended

March 31, 2019,

with the last note extending until

January 2042.

Some of these loans were interest only while others accrued interest that is due in full with a final balloon payment. As of

December 31, 2018,

the debt secured by the real properties had varying annual interest rates from

4.375%

13%.

As mentioned in Note

because the Company

longer has a controlling financial interest in Mt Melrose, it

longer consolidates Mt Melrose, LLC’s assets, liabilities (including notes payable), or results of operations. This results in

zero

notes payable reported under Mt Melrose, LLC as of

December 31, 2019.