INVESTMENT IN UNCONSOLIDATED ENTITY – AVLP

12 Months Ended

Dec. 31, 2022

Investment In Unconsolidated Entity Avlp

INVESTMENT IN UNCONSOLIDATED ENTITY – AVLP

14. INVESTMENT IN UNCONSOLIDATED ENTITY – AVLP

Equity Investments in Unconsolidated Entity – AVLP

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

Investment in Promissory Notes

	Interest		December 31,
	rate		2021
Investment in convertible promissory note		12%	$	17,799,000
Investment in promissory note - Alpha Fund		8%		3,600,000
Accrued interest receivable*				2,092,000
Other				600,000
Total investment in promissory notes, gross				24,091,000
Less: provision for loan losses				(2,000,000	)
Total investment in promissory note			$	22,091,000

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

Investment in Common Stock and Warrants

	December 31,
	2021
Investment in common stock and warrants	$	39,000

The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, AVLP, during the years ended December 31, 2022 and 2021:

	Investment in			Investment in
	warrants and			promissory notes			Total
	common stock			and advances			investment
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		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
Investment in convertible promissory notes		-			2,200,000			2,200,000
Loss from equity investment		(39,000	)		(885,000	)		(924,000	)
Accrued interest		-			143,000			143,000
Loss on remeasurement upon conversion		-			(2,700,000	)		(2,700,000	)
Conversion of AVLP convertible promissory notes		-			(17,040,000	)		(17,040,000	)
Elimination of intercompany debt after conversion		-			(3,809,000	)		(3,809,000	)
Balance at December 31, 2022	$	-		$	-		$	-