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Investment in Note Receivable - Related Party
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Investment in Note Receivable - Related Party

Note 13. Investment in Note Receivable – Related Party

 

On November 2, 2018, the Company entered into a Securities Purchase Agreement with IIU, pursuant to which IIU issued to the

Company a Senior Convertible Promissory Note (the “IIU Note”) in the original principal amount of $1,500,000 in exchange for a

purchase price of $1,500,000. The maturity date of the IIU Note was 360 days after the date of issuance (subject to acceleration upon

an event of default). The IIU Note carried a 3.0% interest rate, with accrued but unpaid interest being payable on the IIU Note’s

maturity date.

 

The IIU Note allowed the Company the right on or after the maturity date to convert any unpaid principal and accrued and unpaid

interest of the IIU Note into shares of IIU based on a conversion amount which is the fair value of the common shares of IIU at the time.

 

The Company subsequently purchased 100% of the issued and outstanding capital stock of IIU on January 16, 2019 for $5,089,357.

On December 20, 2019, the Company loaned $1.5 million to Craven in the form of a secured promissory note (the “Craven Secured

Promissory Note”) which had an initial maturity date of April 15, 2020 and carried an interest rate of 0.5% that is to be paid monthly.

The Company subsequently extended the due date of the Craven Secured Promissory Note and the monthly interest payments to August 1, 2021. The Craven Secured Promissory Note is secured by, among other things, stock pledge of Craven’s 640,000 common stock of the Company and the assignment of the assets of Craven in favor of the Company.

The IIU Note was fully repaid in 2020.