INVESTMENT IN UNCONSOLIDATED ENTITY – AVLP (Tables)

12 Months Ended

Dec. 31, 2021

Investment In Unconsolidated Entity Avlp

Equity investments in an unconsolidated entity, AVLP, at December 31, 2021 and 2020, were comprised of the following:

Equity investments in an unconsolidated entity, AVLP, at December 31, 2021 and 2020, were comprised of the following:

Investment in Promissory Notes

	Interest	Due	December 31,			December 31,
	Rate	Date	2021			2020
Investment in convertible promissory notes	12%	2022-2026	$	21,399,000		$	11,269,000
Accrued interest receivable*				2,092,000			2,025,000
Other				600,000			600,000
Total investment in promissory notes, gross				24,091,000			13,894,000
Less: provision for loan losses				(2,000,000	)		(3,424,000	)
Total investment in promissory note			$	22,091,000		$	10,470,000

* During the years ended December 31, 2021 and 2020, no interest income was recognized from the Company’s investment in AVLP.

Investment in Common Stock and Warrants

	Weighted Avg.
	Remaining	December 31,		December 31,
	Contractual Term	2021		2020
Investment in warrants	2.7 years	$	-	$	4,987,000
Investment in common stock			39,000		500,000
Total investment in common stock and warrants		$	39,000	$	5,487,000

The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, AVLP, during the years ended December 30, 2021 and 2020:

The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, AVLP, during the years ended December 30, 2021 and 2020:

	Investment in			Investment in
	warrants and			promissory notes		Total
	common stock			and advances		investment
Balance at January 1, 2020	$	1,569,000		$	7,141,000	$	8,710,000
Investment in convertible promissory notes		-			1,330,000		1,330,000
Investment in common stock		1,000			-		1,000
Fair value of derivative instruments		344,000			-		344,000
Unrealized gain in derivative instruments		3,312,000			-		3,312,000
Unrealized gain in common stock		260,000			-		260,000
Provision for loan losses		-			2,000,000		2,000,000
Balance at January 1, 2021		5,486,000			10,471,000		15,957,000
Investment in convertible promissory notes		-			7,344,000		7,344,000
Fair value of warrants issued		2,786,000			-		2,786,000
Unrealized loss in warrants		(7,772,000	)		-		(7,772,000	)
Unrealized gain in common stock		(150,000	)		-		(150,000	)
Loss from equity investment		(311,000	)		-		(311,000	)
Accretion of discount		-			4,210,000		4,210,000
Accrued interest		-			66,000		66,000
Balance at December 31, 2021	$	39,000		$	22,091,000	$	22,130,000