XML 51 R41.htm IDEA: XBRL DOCUMENT

INVESTMENTS - RELATED PARTIES (Tables)

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of investments

Investments in AVLP, Alzamend Neuro, Inc. (“Alzamend”) and Ault and Company, Inc. (“Ault & Company”) at March 31, 2021 and December 31, 2020, are comprised of the following:

		March 31,				December 31,
		2021				2020
Investment in convertible promissory note of AVLP		$	13,924,136			$	11,269,136
Short term advance in Alzamend			-				750,000
Investment in convertible promissory note of Alzamend			-				50,000
Investment in promissory note of Ault & Company			2,500,000				-
Accrued interest in promissory notes, related parties			2,027,557				2,026,812
Total investment in promissory notes, related parties – gross			18,451,693				14,095,948
Less: original issue discount			(1,560,302	)			(3,870	)
Less: provision for loan losses			(3,423,608	)			(3,423,608	)
Total investment in promissory notes, related parties			13,467,783				10,668,470

Investment in derivative instruments of AVLP			9,516,024				4,986,552
Investment in common stock of AVLP			819,324				499,588
Investment in common stock and warrants of Alzamend			4,487,091				653,251
Investments in derivatives and common stock, related parties			14,822,439				6,139,391
Total investments, related parties – net		$	28,290,222			$	16,807,861

Investments in derivatives and common stock, related parties		$	14,822,439			$	6,139,391
Investment in promissory notes, related parties			13,467,783				10,668,470
Total investment, related parties – net		$	28,290,222			$	16,807,861

Schedule of summarizes the changes in our investments

The following table summarizes the changes in our investments in AVLP, Alzamend and Ault & Company during the three months ended March 31, 2021:

						Investment in
		Investment in				promissory notes				Total
		warrants and				and advances				investment
		common stock				of AVLP,				in AVLP,
		of AVLP and				Alzamend and				Alzamend and
		Alzamend				Ault & Company				Ault & Company, net
Balance at January 1, 2021		$	6,139,391			$	10,668,470			$	16,807,861
Investment in convertible promissory notes of AVLP			—				1,094,698				1,094,698
Investment in convertible promissory note of Alzamend			—				(50,000	)			(50,000	)
Investment in promissory note of Ault & Company			—				2,500,000				2,500,000
Investment in common stock of AVLP and Alzamend			3,046,016				—				3,046,016
Investment in warrants of Alzamend			953,984				—				953,984
Short term advance in Alzamend			—				(750,000	)			(750,000	)
Fair value of derivative instruments issued by AVLP			1,560,302				—				1,560,302
Unrealized gain in derivative instruments of AVLP			2,969,170				—				2,969,170
Unrealized loss in warrants of Alzamend			(13,086	)			—				(13,086	)
Unrealized gain in common stock of AVLP and Alzamend			166,662				—				166,662
Accretion of discount			—				3,870				3,870
Accrued Interest			—				745				745
Balance at March 31, 2021		$	14,822,439			$	13,467,783			$	28,290,222

Schedule of black-Scholes option-pricing method

The fair value of the Company’s holdings in the AVLP warrants was estimated using the Black-Scholes option-pricing method and the following assumptions:


Exercise price		$0.50
Remaining contractual term (in years)		1.68 — 5.0
Volatility		68.7% — $104.6%
Weighted average risk free interest rate		0.13% — 2.98%
Expected dividend yield		0%