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Notes Receivable | 6 Months Ended
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Jun. 30, 2023
Receivables [Abstract] |
Notes Receivable | 4. Notes Receivable Note 1 On February 8, 2021, the Company entered into a convertible promissory note (“Note 1”) with Borrower 1, 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 the date of issuance. Borrower 1 repaid the principal and interest in full in April 2022. Note 2 On May 14, 2021, DSS Pure Air, Inc. a subsidiary of the Company entered a convertible promissory note (“Note 2”) with Borrower 2, a company registered in the state of Texas. Note 3 has an aggregate principal balance up to $5,000,000, to be funded at the request of Borrower 2. Note 2, which incurs interest at a rate of 6.65% due quarterly, has a maturity date of May 1, 2023. Note 2 contains an optional conversion clause that allows the Company to convert all, or a portion of all, into newly issued member units of Borrower 2 with the maximum principal amount equal to 18% of the total equity position of Borrower 2 at conversion. The outstanding principal and interest as of June 30, 2023, and December 31, 2022, approximated $5,544,000 and $5,420,000, respectively, which is included in current notes receivable on the accompanying consolidated balance sheet. As of June 30, 2023, the Company has a reserve of $2,884,000 against the principal and interest outstanding. The due date of this loan is currently being re-negotiated. Note 3 On September 23, 2021, APB entered into refunding bond anticipatory note (“Note 3”) with Borrower 3, 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 5.59% per annum. Principal and interest are due in full on September 22, 2022, and later amended to extend the maturity date to September 22, 2023. 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. The outstanding principal and interest of $3,802,000 and $3,701,000 of Note 3 is included in the current portion of notes receivable on the consolidated balance sheet at June 30, 2023 and December 31, 2022, respectively. Note 4 On October 25, 2021, APB entered into a loan agreement (“Note 4”) with Borrower 4, a company registered in the state of Utah. Note 4 has an initial aggregate principal balance up to $1,000,000, to be funded at the request of Borrower 4, with an option to increase the maximum principal borrowing to $3,000,000. Note 4, 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 4, has the right to elect one member to the Board of Managers. This note is in default and the outstanding principal and interest of approximately $884,000 was reserved for fully as of December 31, 2022. Note 5 On May 14, 2021, APB extended the credit (“Note 5”) to an individual (“Borrower 5”) in the form of two promissory notes for $250,000 and $10,000 respectively, bearing interest at 12.5%, with a maturity date of May 15, 2023. 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 $262,000 and $9,000 are included in current portion of Notes receivable on the consolidated balance sheet at June 30, 2023 and $252,000 and $9,000 are included in Note receivable at December 31, 2022. The due date of this loan is currently being re-negotiated. Note 6 On October 27, 2021, HWH World, Inc., a subsidiary of the Company entered a revolving loan commitment (“Note 6”) with Borrower 8, a company registered in Taiwan. The outstanding principal and interest at June 30, 2023 and December 31, 2022 is $68,000 and $63,000, respectively, and is included in the current portion of Held-for-sale. This note was amended in April 2022 to borrow up to $102,000 and extend the maturity date through April 2023 bearing interest rate of 18%. The due date of this loan is currently being re-negotiated. Note 7 On December 28, 2021, APB entered into a promissory note (“Note 7”) with Borrower 7, a company registered in the state of California. Note 7 has a principal balance of $700,000. Note 7, which incurs interest at a rate of 12.0% with principal and interest due at the maturity date of December 28, 2022. On December 29, 2022, the maturity date of this note was extended to May 31, 2023. The outstanding principal and interest of $612,000 and $701,000 is included in the Current portion of notes receivable on the consolidated balance sheet at June 30, 2023 and December 31, 2022, respectively. This note has been extended to November 30, 2023. Note 8 On January 24, 2022, APB and Borrower 8 entered into a promissory note (“Note 8”) in the principal sum of $100,000 with interest of 6%, due annually, and maturing in January 2024. The outstanding principal and interest at June 30, 2023 and December 31, 2022 approximates $99,000 and $106,000, respectively, and is included in Notes receivable on the accompanying consolidate balance sheet. Note 9 On March 2, 2022, APB and Borrower 9, a corporation organized under the laws of the Republic of Korea entered into a promissory note (“Note 9”). Under the terms of Note 9, 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 June 30, 2023 is $435,000, net of $14,000 of unamortized origination fees. The outstanding principal and interest at December 31, 2022 is $874,000 net of $25,000 of unamortized origination fees. Note 10 On May 9, 2022, DSS PureAir and Borrower 2 entered into a promissory note (“Note 10”) 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 are due on February 9, 2023. The outstanding principal and interest at June 30, 2023 approximates $224,000 and is included in current portions of notes receivable on the accompanying consolidate balance sheet. The outstanding principal and interest at December 31, 2022 approximates $213,000 and is included in current portions of notes receivable on the accompanying consolidate balance sheet. The due date of this loan is currently being re-negotiated. Note 11 On August 29, 2022, DSS Financial Management Inc and Borrower 11 entered into a promissory note (“Note 11A”) in the principal sum of $100,000 with interest of 8%, is due in three quarterly installments beginning on September 14, 2022. All unpaid principal and interest is due on August 29, 2025. The outstanding principal and interest at June 30, 2023 and December 31, 2023 approximates $99,000, and $100,000, respectively, and is included in Notes receivable on the accompanying consolidate balance sheet. Borrower 11 entered into a second promissory note (Note 11B) on May 8, 2023 in the principal sum of $100,000 with interest of prime plus 2% (effective rate of 10.25% at June 30, 2023), due on May 7, 2026. The outstanding principal and interest as of June 30, 2023 approximates $102,000 and is included in Notes receivable on the accompanying consolidate balance sheet. Note 12 On July 26, 2022, APB and Borrower 12 entered into a promissory note (“Note 12”) in the principal sum of $1,000,000 with interest of 8%. All unpaid principal and interest due on July 26, 2024. The outstanding principal and interest on June 30, 2023, approximates $861,000, net of $40,000 of unamortized origination fees and is included in Notes receivable on the accompanying consolidate balance sheet. The outstanding principal and interest at December 31, 2022 approximates $924,000, net of $66,000 of unamortized origination fees and is included in Notes receivable on the accompanying consolidate balance sheet. Note 13 On June 15, 2022, Decentralized and Borrower 13 entered into a convertible promissory note (“Note 13”) in the principal sum of $27,000,000 with interest of 8%, with an optional conversion into shares of Borrower 13 at a conversion price of $0.03, maturing on June 14, 2024, with interest due quarterly. In December 2022, this note was fully reserved for. Note 14 On February 19, 2021, Impact BioMedical, Inc, a subsidiary of the Company, entered into a promissory note (Note 14) with Borrower 14. The Company loaned the principal sum of $206,000, with interest at a rate of 6.5%, and maturity date of August 19, 2022 later amended 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. This note is secured by certain real property situated in Collier County, Florida. The outstanding principal and interest as of June 30, 2023, approximated $204,000 and is classified in current notes receivable on the accompanying consolidated balance sheets. The outstanding principal and interest as of December 31, 2022 approximated $206,000 with $16,000 classified in Current portion of notes receivable and $190,000 classified as Notes receivable on the accompanying consolidated balance sheets. Note 15 On May 8, 2023, DSS Financial Management Inc and Borrower 15 entered into a promissory note (“Note 15”) in the principal sum of $102,000 with interest at the prime rate plus 2% (10.5% at June 30, 2023) with a maturity date of May 5, 2026. The outstanding principal and interest at June 30, 2023 approximates $102,000 with approximately $36,000 of principal and accrued interest classified as current portion of long-term debt, net, and the remaining balance of approximately $65,000 is recorded as long-term debt. Note 16 On June 27, 2023, Decentralized and Borrower 16 entered into a convertible promissory note (“Note 16”) in the principal sum of $1,400,000 with a discount of $300,000 and interest rate of 10% and maturity date of September, 1, 2024. The outstanding principal and interest as of June 30, 2023, approximated $1,100,000 and is classified in the long-term notes receivable on the accompanying consolidated balance sheets. Note 17 On March 31,2023, DSS Biohealth Security, Inc and Borrower 17 entered into a promissory note (“Note 17”) in the principal sum of $140,000 and interest rate floating daily to Wall Street Journal Prime rate per annum with the total outstanding principal and interest due at the maturity date of March 31, 2025. The outstanding principal and interest at June 30, 2023 approximates $127,000. Of the total financed, approximately $83,000 of principal and accrued interest is classified as current portion of long-term debt, net, and the remaining balance of approximately $44,000 is recorded as long-term debt.

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