| Loans held for investment |
Note
7 —— Loans held for investment
As
of March 31, 2022 and December 31, 2021, loans held-for-investment consisted of the following:
Summary
of Loans Held for Investment
| |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
| Loans held-for-investment: |
|
|
|
|
|
|
|
|
| PZAJ Holdings, LLC (i)
|
|
$ |
4,600,000 |
|
|
$ |
3,950,000 |
|
| Carlin Haynes, LLC (ii)
|
|
$ |
750,000 |
|
|
$ |
250,000 |
|
| Total loans held-for-investment |
|
$ |
5,350,000 |
|
|
$ |
4,200,000 |
|
| (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 March 31, 2022, the Company has loaned $4,600,000
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 Lomotif.
|
| (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 March 31, 2022, the Company has loaned
$4,600,000 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 Lomotif. The interest rate on the notes is 2%
per annum. The loans are due at various times in 2022. The purpose of the loans 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. As of March 12, 2022, PZAJ, its existing members and the Company entered into a Limited Liability Company Agreement
of PZAJ, pursuant to which the loans extended by Vinco or on its behalf to PZAJ in the aggregate amount of $5,590,000 was converted into
a capital contribution of Vinco into PZAJ and Vinco was admitted into PZAJ as a member owning a 51% membership interest. |
| |
|
| |
The
interest rate on the notes is 2%
per annum. The loans are due at various times in 2022. The purpose of the loans 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.
As of March 12, 2022, PZAJ, its existing members and the Company entered into a Limited Liability Company Agreement
of PZAJ, pursuant to which the loans extended by Vinco or on its behalf to PZAJ in the aggregate amount of $5,590,000 was converted into
a capital contribution of Vinco into PZAJ and Vinco was admitted into PZAJ as a member owning a 51% membership interest.
|
| |
|
| (ii) |
On
August 5, 2021, the Company loaned $250,000
to Carlin Haynes, LLC,
dba TMX. 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 an arm’s 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
all or a portion of the note issued to the Company (the “TMX Note”), in accordance with their respective terms
and the TMX Note has not been paid in full, then the outstanding principal balance of the TMX 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 Carlin Haynes LLC equal to the outstanding principal balance of the TMX
Note and all accrued and unpaid interest due on the TMX 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 March 31, 2022 and December 31, 2021, loans held-for-investment – related parties consisted of the following:
Summary
of Related Parties Loans Held for Investment
| |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
| Loans held-for-investment – related parties: |
|
|
|
|
|
|
|
|
| Zash Global Media and Entertainment Corporation (iii)
|
|
|
15,000,000 |
|
|
|
15,000,000 |
|
| Magnifi U (iv)
|
|
|
1,500,000 |
|
|
|
1,500,000 |
|
| Wattum Management (v)
|
|
|
4,000,000 |
|
|
|
4,000,000 |
|
| Total loans held-for-investment – related parties |
|
$ |
20,500,000 |
|
|
$ |
20,500,000 |
|
| (iii) |
ZASH
Global Media and Entertainment Corporation is a media and entertainment company involved
in the development of consumer facing content.
As
of March 31, 2022, the Company has loaned $15,000,000
to ZASH under multiple financings. The interest
rate on the notes is 6%
per annum. The
loans are due in 2023. The purpose of the
loans is to engage in the acquisition, development and production of consumer facing content and related activities.
In
the event that ZASH issues and sells preferred equity securities to one or more investors in an arm’s 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 all
or a portion of the notes issued to the Company (the “ZASH Notes”), in accordance with their respective terms
and the ZASH Notes have not been paid in full, then the outstanding principal balance of the ZASH Notes and all
accrued and unpaid interest thereon shall automatically convert in whole without any further action by the Company into the number
of preferred equity securities of ZASH equal to the outstanding principal balance of the ZASH Notes and all
accrued and unpaid interest due on the ZASH Notes on the date of conversion, divided by 80% of the price per share 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. |
|