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Notes Receivable | 9 Months Ended
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Sep. 30, 2022
Receivables [Abstract] |
Notes Receivable | 3. Notes Receivable Note 1 On October 15, 2020, APB entered into a loan agreement with (“Note 1”) with Borrower 1. Note 1, not to exceed the principal sum of $200,000, has an interest rate of 12%, and matures on October 15, 2022. The outstanding principal and interest as of September 30, 2022 and December 31, 2021, approximated $0 and $39,000, respectively and is classified as a Current portion of notes receivable on the Consolidated Balance Sheets at December 31, 2021. The outstanding balance of $39,000 was converted to equity in Borrower 1. Note 2 On February 8, 2021, the Company entered into a convertible promissory note (“Note 2”) with Borrower 2, a company registered in Gibraltar. The Company loaned the principal sum of $800,000, with principal and interest at a rate of 4%, due in one year from date of issuance. The outstanding principal and interest as of September 30, 2022 and December 31, 2021, approximated $0 and $829,000, respectively, and is classified as a Current portion of notes receivable on the Consolidated Balance Sheets at December 31, 2021. Borrower 2 repaid the principal and interest in full in April 2022. Note 3 On February 21, 2021, Impact BioMedical, Inc. a subsidiary of the Company, entered into a promissory note (“Note 3”) with an individual. The Company loaned the principal sum of $206,000, with interest at a rate of 6.5%, and maturity date of August 19, 2022. This note was amended to extend the maturity date to February 19, 2024.Monthly payments are due on the twenty-first day of each month and continuing each month thereafter until February 19, 2024, at which time all accrued interest and the entire remaining principal shall be due and payable in full. This note is secured by certain real property situated in Collier County, Florida. The outstanding principal and interest as of September 30, 2022, and December 31, 2021 approximated $206,000 and $197,000 respectively, with $16,000 classified in Current portion of notes receivable and $190,000 classified as Notes receivable on the accompanying consolidated balance sheets. Note 4, related party On May 13, 2021, and later amended in April 2022, Sentinel Brokers, LLC, a subsidiary of the Company entered a revolving credit promissory note (“Note 4”) with Borrower 4, a company registered in the state of New York, of which Sentinel Brokers, LLC., owns 24.9% of the company’s outstanding common stock. The Note 4 has an aggregate principal balance up to $3,000,000, to be funded at request of Borrower 4. Note 4, which incurs interest at a rate of 6.65% is payable in areas until the principal is paid in full at the maturity date of May 13, 2023. As of September 30, 2022 and December 31, 2021, there was $309,000 and $0, respectively, and is included in Current portion of notes receivable on the accompanying consolidated balance sheet. Note 5 On May 14, 2021, DSS Pure Air, Inc. a subsidiary of the Company entered into a convertible promissory note (“Note 5”) with Borrower 5, a company registered in the state of Texas. Note 5 has an aggregate principal balance up to $5,000,000, to be funded at request of Borrower 5. Note 5interest accrues at a rate of 6.5% due quarterly, and has a maturity date of May 14, 2023. Note 5 contains an optional conversion clause that allows the Company to convert all, or a portion of all, into new issued member units of Borrower 5 with the maximum principal amount equal to 18% of the total equity position of Borrower 5 at conversion. The outstanding principal and interest as of September 30, 2022 and December 31, 2021, approximated $5,333,000 and $5,081,000, respectively, which is included in Current portion of notes receivable on the accompanying consolidated balance sheet. Note 6 On September 23, 2021, APB entered into refunding bond anticipatory note (“Note 6”) with Borrower 6, which operates as a conservation and reclamation district pursuant to Chapter 3891, Texas Special District Local Laws Code; Chapter 375, Texas Local Government Code; and Chapter 49, Texas Water Code. The District Note was in the sum of $3,500,000 and incurs interest at a rate of 4.15% per annum. Principal and interest are due in full on September 22, 2022. This note may be redeemed prior to maturity with 10 days written notice to APB at a price equal to principal plus interest accrued on the redemption date. At maturity, the outstanding principal and interest of $3,645,000 of Note 6 was converted into a new note with interest accruing at approximately 5.6% per year with a maturity date of September 21, 2023. The outstanding principal and interest of $3,650,000 and $3,540,000 of the Note 6 is included in Current portion of notes receivable on the consolidated balance sheet at September 30, 2022 and December 31, 2021, respectively. Note 7 On October 25, 2021, APB entered into loan agreement (“Note 7”) with Borrower 7, a company registered in the state of Utah. Note 7 has an initial aggregate principal balance up to $1,000,000, to be funded at request of Borrower 7, with an option to increase the maximum principal borrowing to $3,000,000. Note 7, which incurs interest at a rate of 8.0% with principal and interest due at the maturity date of October 25, 2022. This note contains an optional conversion feature allowing APB to convert the outstanding principal to a 10% membership interest. APB, as holder of Note 7, has the right to elect one member to the Board of Managers. The outstanding principal and interest of approximately $937,000 and $784,000 of the note is included in Current portion of notes receivable on the consolidated balance sheet at September 30, 2022 and December 31, 2021, respectively. The maturity date of Note 7 is in the process of being extended. Note 8 On June 13, 2019, APB extended the credit (“Note 8”) to an individual (“Borrower 8”) in the form of a promissory note for $250,000, bearing interest at 15%, with a maturity date of May 15, 2020. On June 5, 2020, the Company further extended the same credit in the form of a promissory note for $250,000, bearing interest at 15%, with a maturity date of May 14, 2021. On August 30, 2021, the Company further extended the same credit in the form of a promissory note for $250,000, bearing interest at 12.5%, with a maturity date of May 15, 2023. The modification agreement is effective May 14, 2021. This promissory note is secured by a deed of trust on a tract of land, which is approximately 315 acres, and located in Coke County, Texas. The outstanding principal and interest of approximately $256,000 is included in Current portion of notes receivable on the consolidated balance sheet at September 30, 2022 and $260,000 is in included in Notes receivable at December 31, 2021. Note 9, related party On October 7, 2021, HWH World, Inc., a subsidiary of the Company entered into a revolving loan commitment (“Note 9”) with Borrower 9, a company registered in Taiwan. Note 9 has an principal balance of $52,000 and incurred no interest through the maturity date of December 31,2021. The outstanding principal at September 30, 2022 and December 31, 2021 is $61,000 and $52,000, respectively, and is included in the Current portion of notes receivable. This note was amended in April 2022 to extend the maturity date through April 2023. The Chief Operating Officer of DSS is the sole shareholder of Borrower 9. Note 10 On December 28, 2021, APB entered into promissory note (“Note 10”) with Borrower 10, a company registered in the state of California. Note 10 has an principal balance of $700,000. Note 10, which incurs interest at a rate of 12.0% with principal and interest due at the maturity date of December 28, 2022. The outstanding principal and interest of $759,000 and $700,000 of Note 10 is included in Current portion of notes receivable on the consolidated balance sheet at September 30, 2022 and December 31, 2021. Note 11 On January 24, 2022, APB and Borrower 11 entered into a promissory note (“Note 11”) in the principal sum of $100,000 with interest of 6%, due annually, and maturing in January 2024. The outstanding principal and interest at September 30, 2022 approximates $104,000, and is included in Notes receivable on the accompanying consolidate balance sheet. Note 12 On March 2, 2022, APB and Borrower 12, a corporation organized under the laws of the Republic of Korea entered into a promissory note (“Note 12”). Under the terms of Note 12, APB at its discretion, may lend up to the principal sum of $893,000 with an interest rate of 8%, and matures in March 2024, with interest payable quarterly. The outstanding principal and interest at September 30, 2022 is $887,000, of which $446,000 is included in Current notes receivable on the accompanying consolidated balance sheet. Note 13 On May 9, 2022, DSS PureAir and Borrower 5 entered into a promissory note (“Note 13”) in the principal sum of $210,000 with interest of 10%, is due in three quarterly installments beginning on August 9, 2022 with the first two payment consisting of interest only. All unpaid principal and interest is due on February 9, 2023. The outstanding principal and interest at September 30, 2022 approximates $218,000, and is included in Current portions of notes receivable on the accompanying consolidate balance sheet. Note 14, related party On August 29, 2022, DSS Financial Management, Inc. (“DSSFM”) entered into subordinated loan agreement (“Note 14”) with Borrower 14, a broker/dealer, of which DSSFM owns 24.9% of the company’s outstanding common stock, in the principal sum of $100,000 with interest of 8%, due at maturity date of August 29, 2025. The outstanding principal and interest at September 30, 2022 approximates $101,000, and is included in Notes receivable on the accompanying consolidate balance sheet. Note 15 On July 26, 2022, APB entered into a revolving credit promissory note (Note 15) with Borrower 15 for the principal sum up to $1,000,000 which accrues interest at 8% per year and maturing on July 26, 2024. Interest payments are due quarterly beginning on September 30, 2022. Principal and any unpaid interest is due upon maturity. The outstanding principal and interest at September 30, 2022 approximates $917,000, and is included in Notes receivable on the accompanying consolidate balance sheet.

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