LOAN HELD-FOR-INVESTMENT

9 Months Ended

Sep. 30, 2025

Loan Held-for-investment

LOAN HELD-FOR-INVESTMENT

10. LOAN HELD-FOR-INVESTMENT

Loan held-for-investment consist of the following at September 30, 2025 and December 31, 2024:

	September 30, 2025		December 31, 2024
Wattum Management Inc. – 5%, 10/2026	$	2,224,252	$	2,224,252
Reichard Containers, LLC – 9.75%, 4/2035		2,327,516		-
Total loan held-for-investment		4,551,768		2,224,252
Less: allowance for credit losses		-		-
Other current assets – continuing operations	$	4,551,768	$	2,224,252

Wattum Management Inc. is a non-controlling member of CW Machines, LLC, previously a related party, when CW Machines was doing business. The Wattum note is secured by assets of Wattum Management, Inc. The Wattum Management Inc. note is interest only with the entire principal balance due in October 2026.

Reichard Containers, LLC purchased the assets of Ferguson Containers, Inc. on April 7, 2025. The Reichard note is secured by assets of Reichard Containers, LLC. The Reichard note is due on April 2035 and with monthly payments of $32,693 for principal and interest.

Expected credit losses for loan held for investment are based on management’s assessment of credit risk associated with the loan, including consideration of factors such as the financial condition of the entity, historical payment behavior, and any collateral or guarantees provided. The Company determined it was not necessary to record an allowance for credit losses as of September 30, 2025 and December 31, 2024.