XML 54 R44.htm IDEA: XBRL DOCUMENT v3.21.2
INVESTMENTS – RELATED PARTIES (Tables)
 9 Months Ended
Sep. 30, 2021
Investments Related Parties  
Investments in AVLP, Alzamend and Ault & Company at September 30, 2021 and December 31, 2020, are comprised of the following:

Investments in AVLP, Alzamend and Ault & Company at September 30, 2021 and December 31, 2020, are comprised of the following:

 

Investment in Promissory Notes, Related Parties

 

   Interest  Due   September 30,   December 31, 
   Rate  Date   2021   2020 
Investment in convertible promissory note of AVLP  12%  December 31, 2023   $16,549,000   $11,269,000 
Short-term advance in Alzamend          -    750,000 
Investment in convertible promissory note of Alzamend          -    50,000 
Investment in promissory note of Ault & Company  8%  February 25, 2022    2,500,000    - 
Accrued interest receivable, AVLP          2,025,000    2,025,000 

Accrued interest receivable, Ault & Company and Alzamend

          120,000    2,000 
Total investment in promissory notes, related parties – gross          21,194,000    14,096,000 
Less: original issue discount          -    (4,000)
Less: provision for loan losses, AVLP          (2,000,000)   (3,424,000)
Total investment in promissory notes, related parties         $19,194,000   $10,668,000 

 

 

Investment in Common Stock and Warrants, Related Parties

 

   Weighted Avg.        
   Remaining  September 30,   December 31, 
   Contractual Term  2021   2020 
Investment in warrants of AVLP  2.9 years  $-   $4,986,000 
Investment in common stock of AVLP      60,000    500,000 
Investment in warrants of Alzamend  4.7 years   4,070,000    11,000 
Investment in common stock of Alzamend      20,781,000    642,000 
Total investment in common stock and warrants, related parties     $24,911,000   $6,139,000 
The following table summarizes the changes in the Company’s investments in AVLP, Alzamend and Ault & Company during the nine months ended September 30, 2021:

The following table summarizes the changes in the Company’s investments in AVLP, Alzamend and Ault & Company during the nine months ended September 30, 2021:

 

       Investment in     
   Investment in   promissory notes   Total 
   warrants and   and advances   investment in 
   common stock   of AVLP,   AVLP, Alzamend 
   of AVLP and   Alzamend and   and Ault & 
   Alzamend   Ault & Company   Company, net 
Balance at January 1, 2021  $6,139,000   $10,668,000   $16,807,000 
Investment in convertible promissory notes of AVLP   —    2,494,000    2,494,000 
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   16,118,000    —    16,118,000 
Investment in warrants of Alzamend   1,490,000    —    1,490,000 
Short-term advance in Alzamend   —    (750,000)   (750,000)
Fair value of warrants issued by AVLP   2,786,000    —    2,786,000 
Unrealized loss in warrants of AVLP   (7,772,000)   —    (7,772,000)
Unrealized gain in warrants of Alzamend   2,568,000    —    2,568,000 
Unrealized gain in common stock of AVLP and Alzamend   3,582,000    —    3,582,000 
Accretion of discount   —    4,213,000    4,213,000 
Accrued interest   —    119,000    119,000 
Balance at September 30, 2021  $24,911,000   $19,194,000   $44,105,000 
The following table summarizes the changes in the Company’s investments in Alzamend common stock during the nine months ended September 30, 2021:

The following table summarizes the changes in the Company’s investments in Alzamend common stock during the nine months ended September 30, 2021:

 

   Shares of   Per Share   Investment in 
   Common Stock   Price   Common Stock 
 Balance at January 1, 2021   427,888   $1.50   $642,000 
 Purchase of shares from an Alzamend shareholder   62,500   $0.80    50,000 
 March 9, 2021 securities purchase agreement   4,000,000   $1.13    4,510,000 
 Investment in Alzamend initial public offering   2,000,000   $5.00    10,000,000 
 Open market purchases after initial public offering   230,000   $7.17    1,648,000 
 Unrealized gain in common stock of Alzamend             3,849,000 
 Investment in Alzamend common stock   6,720,388   $3.08    20,699,000 
 Investment in Alzamend options             82,000 
 Balance at September 30, 2021            $20,781,000 
The fair value of the Company’s holdings in the 2,016,667 Alzamend warrants was estimated using the Black-Scholes option-pricing method and the following assumptions:

The fair value of the Company’s holdings in the 2,016,667 Alzamend warrants was estimated using the Black-Scholes option-pricing method and the following assumptions:

     
Exercise price   $3.00
Remaining contractual term (in years)   3.9 — 4.8
Volatility   86.3%
Weighted average risk free interest rate   0.76% — 0.98%
Expected dividend yield   0%