As of December 31,2021 and September 30, 2021, the Company had total investments of $5,967,226 and $5,661,036, respectively that comprise of the following:

On November 5, 2019, the Company entered into a binding Memorandum of Understanding (the “MOU”) with International Land Alliance, Inc. (“ILAL”), a Wyoming corporation, to lay a foundational framework where the Company will deploy its energy solutions products and services to ILAL, its energy projects, and its customers.

In connection with the MOU, and to support the power and energy needs of ILALs development and construction of certain projects, the Company entered into a Securities Purchase Agreement (“SPA”), dated as of November 6, 2019, with ILAL.

Pursuant to the terms of the SPA with ILAL, the Company purchased 1,000 shares of Series B Preferred Stock of ILAL (the “Preferred Stock”) for an aggregate purchase price of $500,000 (the “Stock Transaction”), less certain expenses and fees. The Series B Preferred Stock accrue cumulative in-kind accruals at a rate of 12% per annum and

The Company accrued interest on our available-for-sale debt securities totaling $432,219 and $399,863, as of December 31, 2021 and September 30, 2021, respectively, presented as prepaid expense and other current assets on the Consolidated Balance Sheets. The fair value of investment in Debt Securities is $512,721 and $494,608 as of December 31, 2021 and September 30, 2021, respectively. The Company has included gain on change in fair value of preferred stock amounting to $18,113 and $5,392 for the three month period ended December 31, 2021 and for the year end September 30, 2021, respectively, as part of other comprehensive loss in the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has deemed this variable conversion feature of ILAL preferred stock as an embedded derivative instrument in accordance with ASC Topic No. 815. This topic requires the Company to account for the conversion feature on its balance sheet at fair value and account for changes in fair value as a derivative gain or loss. Unrealized gain or loss on fair valuation of this embedded feature is recognized as an income in Consolidated statements of Operations and Comprehensive Income (Loss).

Total fair value of investment in derivative assets as of December 31, 2021 and September 30, 2021, respectively was $5,204,505 and $4,905,656. The Company fair values the debt security as a straight debt instrument based on liquidation value and accrued interest to date. The fair value of the derivative asset is based on the difference in the fair value of the debt security determined as a straight debt instrument and the fair value of the debt security if converted as of the reporting date.

The following table sets forth a reconciliation of carrying value of all investments as of December 31, 2021 and September 2020:


	ILAL Debt Securities		ILAL Derivative Asset		ILAL Equity Securities			Law Clerk Equity Securities
Balance as of September 30, 2021	$	494,608	$	4,905,656	$	10,772		$	250,000
Shares sold during the year		—		—		(9,590	)		—
Realized loss on fair value recognized income in other income/expense		—		—		(1,182	)		—
Unrealized gain recognized in net income in other income/expense		—		298,849		—			—
Unrealized gain on fair value recognized in other comprehensive income		18,113		—		—			—
Balance as of December 31, 2021	$	512,721	$	5,204,505	$	—		$	250,000