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NOTES PAYABLE
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
NOTES PAYABLE

14. NOTES PAYABLE

 

Notes payable at June 30, 2025 and December 31, 2024, were comprised of the following:

                                 
   Collateral   Guarantors  

Interest

rate

 

Effective

rate

  Due date   June 30, 2025  

December 31,

2024

 
AGREE secured construction loans, in default   AGREE hotels     -    9%   12%   March 31, 2026   $68,750,000   $68,750,000 
Circle 8 revolving credit facility   Circle 8 cranes with a book value of $27.7 million     -    8%   8%   December 16, 2025    10,553,000    13,126,000 
Circle 8 equipment financing notes   Circle 8 equipment with a book value of $3.8 million     -    11%   11%   September 15, 2025 through June 15, 2027    1,534,000    2,826,000 
15% term notes, in default   -    Milton C. Ault, III     15%   -   October 31, 2024    -    3,777,000 
ROI promissory note, in default   -    -    18%   45%   May 15, 2025    2,830,000    2,367,000 
Other ($2.4 million in default)   -    -    15%   -    Various    4,839,000    5,826,000 
Total notes payable                         $88,506,000   $96,672,000 
Less:                                 
Unamortized debt discounts                          -    - 
Total notes payable, net                         $88,506,000   $96,672,000 
Less: current portion                          (87,677,000)   (95,768,000)
Notes payable – long-term portion                         $829,000   $904,000 

 

Amendment to AGREE Secured Construction Loans

 

The AGREE secured construction loans with an original due date of January 1, 2025, were amended on February 2, 2025, whereby AGREE agreed to pay monthly installments of interest only based on an annualized interest rate of Term SOFR plus 4.75%. In addition, AGREE agreed to make principal payments of $1.0 million in June 2025 and $2.0 million in September 2025 and December 2025 with the balance due March 1, 2026. AGREE has failed to make timely interest payments per the amended payment terms.

 

Notes Payable Maturities

 

Principal maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of June 30, 2025 were:

     
Year    
2025 (remainder)  $87,677,000 
2026   719,000 
2027   110,000 
   $88,506,000 

 

Interest Expense

                    
   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2025   2024   2025   2024 
Contractual interest expense  $3,400,000   $3,272,000   $7,175,000   $5,266,000 
Forbearance fees   365,000    750,000    377,000    2,250,000 
Amortization of debt discount   3,899,000    1,297,000    3,951,000    3,434,000 
Total interest expense  $7,664,000   $5,319,000   $11,503,000   $10,950,000