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NOTES PAYABLE | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
NOTES PAYABLE | 14. NOTES PAYABLE Notes payable at September 30, 2025 and December 31, 2024, were comprised of the following:
Schedule of notes payable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Collateral |  | Guarantors |  |  | Interest rate |  | Effective rate(1) |  | Due date |  | September 30, 2025 |  |  | December 31, 2024 |
AGREE secured construction loans, in default |  | AGREE hotels |  | - |  |  | 9% |  | 11% |  | March 31, 2026 |  | $ | 68,750,000 |  |  | $ | 68,750,000 |
Circle 8 revolving credit facility |  | Circle 8 cranes with a book value of $26.2 million |  | - |  |  | 8% |  | 8% |  | December 16, 2025 |  |  | 7,201,000 |  |  |  | 13,126,000 |
Circle 8 equipment financing notes |  | Circle 8 equipment with a book value of $3.4 million |  | - |  |  | 6% |  | 6% |  | October 17, 2025 through July 20, 2029 |  |  | 2,562,000 |  |  |  | 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% |  | 35% |  | May 15, 2025 |  |  | - |  |  |  | 2,367,000 |
Other ($1.2 million in default) |  | - |  | - |  |  | 12% |  | - |  | Various |  |  | 1,526,000 |  |  |  | 5,826,000 |
Total notes payable |  |  |  |  |  |  |  |  |  |  |  |  | $ | 80,039,000 |  |  | $ | 96,672,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unamortized debt discounts |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  | - |
Total notes payable, net |  |  |  |  |  |  |  |  |  |  |  |  | $ | 80,039,000 |  |  | $ | 96,672,000 |
Less: current portion |  |  |  |  |  |  |  |  |  |  |  |  |  | (78,359,000 | ) |  |  | (95,768,000 | )
Notes payable – long-term portion |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,680,000 |  |  | $ | 904,000 |
| (1) | Includes forbearance and extension fees and original issue discount (“OID”) costs that are amortized to interest expense over the life of the notes.
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. Gain on Extinguishment of ROI Note Payable During the three months ended September 30, 2025, the Company recognized a gain on extinguishment of debt of $1.1 million related to the pay-off of an ROI note payable. 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 September 30, 2025 were:
Schedule of maturities |  |  |  |  |
Year |  |  |  |
2025 (remainder) |  |  | $ | 78,359,000 |
2026 |  |  |  | 759,000 |
2027 |  |  |  | 325,000 |
2028 |  |  |  | 325,000 |
2029 |  |  |  | 271,000 |
|  |  | $ | 80,039,000 |
Interest Expense
Schedule of interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Contractual interest expense |  | $ | 2,838,000 |  |  | $ | 5,350,000 |  |  | $ | 10,013,000 |  |  | $ | 10,725,000 |
Forbearance fees |  |  | 59,000 |  |  |  | 1,050,000 |  |  |  | 436,000 |  |  |  | 3,300,000 |
Amortization of debt discount |  |  | 166,000 |  |  |  | 1,366,000 |  |  |  | 4,117,000 |  |  |  | 4,800,000 |
Total interest expense |  | $ | 3,063,000 |  |  | $ | 7,766,000 |  |  | $ | 14,566,000 |  |  | $ | 18,825,000 |

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