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INVESTMENTS – RELATED PARTIES | 3 Months Ended
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Mar. 31, 2025
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] |
INVESTMENTS – RELATED PARTIES | 11. INVESTMENTS – RELATED PARTIES Investments in Alzamend Neuro, Inc. (“Alzamend”), Ault & Company, Inc. (“Ault & Company”) and GIGA at March 31, 2025 and December 31, 2024, were comprised of the following: Investment in Promissory Notes, Related Parties – Ault & Company and GIGA
Schedule of investment |  |  |  |  |  |  |  |  |  |
|  | Interest |  |  |  | March 31, |  |  | December 31, |
|  | Rate |  | Due Date |  | 2025 |  |  | 2024 |
Promissory note and accrued interest receivable, Ault & Company, in default |  | 8% |  | December 31, 2024 |  | $ | 541,000 |  |  | $ | 2,468,000 |
Promissory note and accrued interest receivable, GIGA |  | 6% - 12% |  | In bankruptcy |  |  | 19,440,000 |  |  |  | 18,499,000 |
Other |  |  |  |  |  |  | 335,000 |  |  |  | 335,000 |
Allowance for credit losses |  |  |  |  |  |  | (500,000 | ) |  |  | (500,000 | )
Total investment in promissory notes and other, related parties |  |  |  |  |  | $ | 19,816,000 |  |  | $ | 20,802,000 |
Summary of interest income, related party, recorded within interest and other income on the condensed consolidated statement of operations:
Schedule of Interest income, related party |  |  |  |  |  |
|  | For the Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Interest income, related party |  | $ | 579,000 |  |  | $ | 209,000 |
At each reporting date, the Company applies its judgment to evaluate the collectability of the note receivable and makes a provision based on the assessed amount of expected credit loss. This judgment is based on parameters such as interest rates, market conditions and creditworthiness of the creditor. The Company determined that the collectability of certain notes receivables is doubtful based on information available. Investment in Alzamend Series B Convertible Preferred Stock, Warrants and Common Stock, Related Parties – Alzamend
Schedule of investment in common stock |  |  |
|  | Investments in Common Stock, Related Parties at March 31, 2025 |
|  | Cost |  |  | Gross Unrealized Losses |  |  | Fair value |
Common shares |  | $ | 24,705,000 |  |  | $ | (24,624,000 | ) |  | $ | 81,000 |
Alzamend series B convertible preferred stock, warrants |  |  | 2,100,000 |  |  |  | - |  |  |  | 2,100,000 |
|  | $ | 26,805,000 |  |  | $ | (24,624,000 | ) |  | $ | 2,181,000 |
|  | Investments in Common Stock, Related Parties at December 31, 2024 |
|  | Cost |  |  | Gross Unrealized Losses |  |  | Fair value |
Common shares |  | $ | 24,697,000 |  |  | $ | (24,607,000 | ) |  | $ | 90,000 |
Alzamend series B convertible preferred stock, warrants |  |  | 2,100,000 |  |  |  | - |  |  |  | 2,100,000 |
|  | $ | 26,797,000 |  |  | $ | (24,607,000 | ) |  | $ | 2,190,000 |
The following tables summarize the changes in the Company’s investments in Alzamend common stock during the three months ended March 31, 2025 and 2024:
Schedule of investment in warrants and common stock |  |  |  |  |  |
|  | For the Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Balance at January 1 |  | $ | 90,000 |  |  | $ | 679,000 |
Investment in common stock of Alzamend |  |  | 8000 |  |  |  | 5,000 |
Unrealized loss in common stock of Alzamend |  |  | (17,000 | ) |  |  | 84,000 |
Balance at March 31 |  | $ | 81,000 |  |  | $ | 768,000 |
Ault Lending, LLC (“Ault Lending”) Investment in Alzamend Series B Convertible Preferred Stock and Warrants
Schedule of investment in warrants and preferred stock |  |  |  |  |  |
|  | March 31, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Investment in Alzamend preferred stock |  | $ | 2,100,000 |  |  | $ | 2,100,000 |
Total investment in other investments securities, related party |  | $ | 2,100,000 |  |  | $ | 2,100,000 |
In connection with a securities purchase agreement entered into with Alzamend in January 2024, Ault Lending purchased 2,100 shares of Alzamend Series B Convertible Preferred Stock and warrants to purchase 0.2 million shares of Alzamend common stock with a five-year term and an exercise price of $12.00 per share for a total purchase price of $2.1 million. The Company has elected to account for investment in other investments securities, related party, using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments. Messrs. Ault, Horne and Nisser are each paid $50,000 annually by Alzamend.

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- Definition The entire disclosure of information about investment held by insurance company, excluding investment in related party. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-X (SX) -Number 210 -Section 12 -Subsection 15 -Publisher SEC Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 7 -Subparagraph (SX 210.12-15) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-7 + Details
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