RELATED PARTY ADVANCES AND LINE OF CREDIT

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

RELATED PARTY ADVANCES AND LINE OF CREDIT

NOTE 6 – RELATED PARTY ADVANCES AND LINE OF CREDIT

Related Party Advances and Line of Credit consisted of the following:

	December 31, 2021		December 31, 2020
Related Party Notes Payable, current portion	$	501,000	$	-
Short Term Advances		-		1,062,000
Line of credit		-		1,000,000
Accrued interest		19,000		326,000
Other		4,000
Current portion	$	524,000	$	2,388,000

On September 5, 2017, the Company obtained a revolving line of credit from Berkshire Capital Management Co., Inc. which is controlled by the Company’s former chairman of the board. The line of credit allows the Company to borrow up to $1,000,000 with interest at 6% per annum. The loan is secured by a first lien on all the assets of the Company and its wholly owned subsidiary SPYR APPS^®, LLC. The loan was fully drawn as of February 2018, at which time the Company had borrowed $1,000,000 and accrued interest of approximately $16,000. Repayment on the loan is due December 31, 2021. As of December 31, 2020, the Company has borrowed $1,000,000 and accrued interest of approximately $204,000.

During 2018 and 2019, the Company has received an additional $1,062,000 in the form of short-term advances from Berkshire Capital Management Co., Inc. The last advance occurred on September 30, 2019, at which time the Company had borrowed $1,062,000. No further advances are expected from Berkshire Capital Management Co., Inc. The Company has accrued interest on these short-term advances at 6% per annum. The short-term advances are due upon demand. As of December 31, 2020, the Company has borrowed $1,062,000 and accrued interest of approximately $122,000.

During the year ended December 31, 2020, no professional services were rendered to this Limited Liability Company and no revenue was received therefrom.

During the period from January 1 through March 31, 2020, the Company, received $185,000 in revenue for professional services rendered to Berkshire Capital Management Co., Inc. During the period April 1, 2020 through December 31, 2021, no professional services were rendered to Berkshire Capital Management Co., Inc. and no revenue was received therefrom.

On May 17, 2021, the Company entered into an agreement to borrow funds from the 481149 Irrevocable Trust that controls all of the currently outstanding preferred stock of the Company, and whose trustee is the Chief Executive Officer of the Company and a member of the board of directors. Pursuant to the agreement, the Company borrowed approximately $501,000 with interest at 6% per annum due and payable on May 17, 2022. As of December 31, 2021, the balance due with accrued interest is approximately $524,000.

The amounts shown as related party in December 31, 2020 are no longer considered a related party as of December 31, 2021, in accordance with FASB ASC 850.