Annual report pursuant to Section 13 and 15(d)

Loans held for investment

v3.22.1
Loans held for investment
12 Months Ended
Dec. 31, 2021
Loans Held For Investment  
Loans held for investment

Note 8 — Loans held for investment

 

As of December 31, 2021 and 2020, loans held-for-investment consisted of the following:

 

    December 31,     December 31,  
    2021     2020  
Short-term loans held-for-investment:                
Loans held-for-investment – PZAJ Holdings, LLC (i)   $ 3,950,000     $ -  
Total short-term loans held for investment   $ 3,950,000     $ -  
                 
Long-term loans held-for-investment:                
Loans held-for-investment – Carlin Haynes, LLC (ii)   $ 250,000     $ -  
Total long-term loans held-for-investment   $ 250,000     $ -  

 

(i) PZAJ Holdings, LLC (“PZAJ”) is an entertainment content development company engaged in the acquisition, financing, development, production, and distribution of films and television projects. As of December 31, 2021, the Company has loaned $3,950,000 to PZAJ pursuant to multiple promissory notes (collectively, the :PZAJ Notes”) to co-develop certain film and television projects including but not limited to Preach, Camp Hideout, Camp Radio and Thrillusionist. The co-developed projects are intended to be licensed or sold to various media companies or streamed on LOMO TV.
   
  The interest rate on the note is 2% per annum. The loans are due in 2022. The purpose of the loan is to engage in the acquisition, development and production of consumer facing content and related activities. The loans are nonrecourse loans and will be repaid with earned revenues for each project.
   
(ii) On August 5, 2021, the Company loaned $250,000 to Carlin Haynes, LLC. The interest rate on the note is 6% per annum. The maturity date of the loan is August 5, 2023. The purpose of the loan is to engage in the creation and distribution of digital media content. In the event that Carlin Haynes, LLC issues and sells units of preferred equity securities to one or more investors in a arms’ length transaction or series of related transactions with the principal purpose of raising capital that results in aggregate gross proceeds to Carlin Haynes, LLC of at least $1,000,000, excluding the amount represented by the conversion of any simple agreement for future equity or outstanding indebtedness, including the Notes, in accordance with their respective terms and the Note has not been paid in full, then the outstanding principal balance of the Note and all accrued and unpaid interest thereon shall automatically convert in whole without any further action by the Company into the number of limited liability company membership units/interests of the equal to the outstanding principal balance of this Note and all accrued and unpaid interest due on the Note on the date of conversion, divided by 80% of the price per unit paid by the Investors to purchase the New Securities in the Qualified Financing.

 

As of December 31, 2021 and 2020, loans held-for-investment – related parties consisted of the following:

 

    December 31,     December 31,  
    2021     2020  
Long-term loans held-for-investment – related parties:                
Loans held-for-investment, related party – Zash Global Media and Entertainment Corporation (iii)     15,000,000       -  
Loans held-for-investment, related party – Magnifi U (iv)     1,500,000       -  
Loans held-for-investment, related party – Wattum Management (v)     4,000,000       -  
Total long-term term loans held-for-investment – related parties   $ 20,500,000     $ -  

 

(iii)

ZASH Global Media and Entertainment Corporation is a media and entertainment company involved in development consumer facing content.

 

During 2021, the Company loaned $15,000,000 to ZASH under multiple financings. The interest rate on the note is 6% per annum. The loans are due in 2023. The purpose of the loan is to engage in the acquisition, development and production of consumer facing content and related activities.

 

In the event that ZASH issues and sells units of preferred equity securities to one or more investors in a arms’ length transaction or series of related transactions with the principal purpose of raising capital that results in aggregate gross proceeds to ZASH of at least $1,000,000, excluding the amount represented by the conversion of any simple agreement for future equity or outstanding indebtedness, including the Notes, in accordance with their respective terms and the Note has not been paid in full, then the outstanding principal balance of the Note and all accrued and unpaid interest thereon shall automatically convert in whole without any further action by the Company into the number of limited liability company membership units/interests of the equal to the outstanding principal balance of this Note and all accrued and unpaid interest due on the Note on the date of conversion, divided by 80% of the price per unit paid by the Investors to purchase the New Securities in the Qualified Financing.

   
(iv) On October 12, 2021, the Company loaned $1,500,000 to Magnifi U. The interest rate on the note is 3% per annum. The maturity date of the loan is October 12, 2023. The purpose of the loan is to engage in the creation and distribution of digital media content.
   
(v) On October 14, 2021, the Company loaned $4,000,000 to Wattum Management, Inc. The interest rate on the note is 5% per annum. The maturity date of the loan is October 12, 2026. The purpose of the loan is to engage in the sale of crypto mining equipment.