| Loans Held for Investment |
Note
7 — Loans Held for Investment
As
of June 30, 2022 and December 31, 2021, loans held-for-investment consisted of the following:
Summary
of Loans Held for Investment
| |
|
June 30,
2022
|
|
|
December 31,
2021
|
|
| Loans
held-for-investment: |
|
|
|
|
|
|
|
|
| Carlin
Haynes, LLC (i) |
|
$ |
750,000 |
|
|
$ |
250,000 |
|
| Total
loans held-for-investment |
|
$ |
750,000 |
|
|
$ |
250,000 |
|
| (i) |
On
August 5, 2021, the Company loaned $250,000
to Carlin Haynes, LLC, DBA TMX. On January 18, 2022, the Company loaned an additional $500,000 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 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 June 30, 2022, and December 31, 2021, loans held-for-investment – related parties consisted of the following:
Summary
of Related Parties Loans Held for Investment
| |
|
June 30,
2022
|
|
|
December 31,
2021
|
|
| Loans
held-for-investment – related parties: |
|
|
|
|
|
|
|
|
| PZAJ Holdings, LLC(ii)
|
|
$ |
5,740,000 |
|
|
$ |
3,950,000 |
|
| ZASH
Global Media and Entertainment Corporation (iii) |
|
|
18,451,250 |
|
|
|
15,000,000 |
|
| Total Loans Held-For-Investment – Related Parties |
|
$ |
24,191,250 |
|
|
$ |
18,950,000 |
|
| (ii) |
PZAJ is an entertainment content development company engaged in the acquisition, financing, development, production, and distribution
of films and television projects. The loans each bear an interest rate of 2% per annum, with a one-year maturity (see Note 3). |
| (iii) |
ZASH
Global Media and Entertainment Corporation is a media and entertainment company involved
in the development of consumer facing content. |
As
of June 30, 2022, the Company has loaned $19,500,250
to ZASH under multiple financings, $18,451,250 of which is outstanding. The interest rates on the notes are 3% or 6%
per annum. The
loans are due in 2023 with $10,000,000 classified as current and $8,451,250 classified as non-current. 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.
On
December 30, 2021 the Vinco Ventures, Inc. Board of Directors unanimously approved Vinco Ventures, Inc hiring of then-current employees
of ZASH. The founding members of ZASH were not hired by Vinco.
|