Notes Receivable

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Notes Receivable

Note 8. Notes Receivable

The following table presents the Company’s notes receivable at December 31, 2021 ($ in thousands):

	Maturity Date	Stated Interest Rate		Interest Receivable		Fair Value
Shor-term convertible notes receivable
Slinger Bag Inc Investment	08/06/2022	8	%	$	45	$	1,445
Nano Innovations Inc Investment	12/26/2022	10	%	$	1	$	751
Short-term notes receivable
Raefan Group LLC Investment	10/13/2022	8	%	$	48	$	2,828
Raefan Industries LLC Investment	12/06/2022	8	%	$	11	$	1,961
Long-term convertible note receivable
Convergent Investment	01/29/2023	8	%	$	147	$	2,147

Convergent Investment

On January 29, 2021, the Company purchased an 8% convertible promissory note (“Convergent Convertible Note”) issued by Convergent Therapeutics, Inc. (“Convergent”) in the principal amount of $2.0 million pursuant to a Note Purchase Agreement with Convergent. The Company paid a purchase price for the Convergent Convertible Note of $2 million. The Company will receive interest on the Convergent Convertible Note at the rate of 8% per annum payable upon conversion or maturity of the Convergent Convertible Note. The Convergent Convertible Note shall mature on January 29, 2023.

The Company recorded an interest income receivable of approximately $0.1 million on the Convergent Convertible Note as of December 31, 2021.

Raefan Group LLC Investment

On October 13, 2021, the Company purchased an 8% promissory note (“Raefan Group Promissory Note”) issued by Raefan Group, LLC (“Raefan Group”) in the principal amount of approximately $2.8 million pursuant to a Note Purchase Agreement with Raefan Group.  The Company will receive interest on the Raefan Group Promissory Note at the rate of 8% per annum payable upon conversion or maturity of the Raefan Group Promissory Note. The Raefan Group Promissory Note shall mature on October 13, 2022.

The Company recorded an interest income receivable of approximately $48,000 on the Raefan Group Promissory Note as of December 31, 2021.

Raefan Industries LLC Investment

On December 6, 2021, the Company purchased an 8% promissory note (“Raefan Industries Promissory Note”) issued by Raefan Industries, LLC (“Raefan Industries”) in the principal amount of approximately $2.0 million pursuant to a Note Purchase Agreement with Raefan Industries. The Company paid a purchase price for the Raefan Industries Promissory Note of approximately $2.0 million. The Company will receive interest on the Raefan Industries Promissory Note at the rate of 8% per annum payable upon conversion or maturity of the Raefan Industries Promissory Note. The Raefan Industries Promissory Note shall mature on December 6, 2022.

The Company recorded an interest income receivable of approximately $11,000  on the Raefan Industries Promissory Note as of December 31, 2021.

Slinger Bag Inc Investment

On August 6, 2021, the Company entered into a securities purchase agreement (the “Slinger Bag Securities Purchase Agreement”) with Slinger Bag Inc., (“Slinger Bag”). Under the Slinger Bag Securities Purchase Agreement, the Company purchased an 8% convertible promissory note (“Slinger Bag Convertible Note”) in the principal amount of $1.4 million and a common stock purchase warrant to purchase up to 933,333 shares of common stock of Slinger Bag. The Company paid a purchase price of $1.4 million for the Slinger Bag Convertible Note and the common stock purchase warrant. The Company will receive interest on the Slinger Bag Convertible Note at the rate of 8% per annum payable upon conversion or maturity of the Slinger Bag Convertible Note. The Slinger Bag Convertible Note shall mature on August 6, 2022.

The Company recorded an interest income receivable of approximately $45,000 on the Slinger Bag Convertible Note as of December 31, 2021.

Nano Innovations Inc Investment

On December 26, 2021, the Company entered into a securities purchase agreement (the “Nano Securities Purchase Agreement”) with Nano Innovations Inc., (“Nano”). Under the Nano Securities Purchase Agreement, the Company purchased a 10% senior secured convertible promissory note (“Nano Convertible Note”) in the principal amount of $750,000 and warrants permitting the Company to purchase an amount of Nano’s common voting shares equal to 50% of the number of common shares issuable upon the conversion of Nano Convertible Note. The Company paid a purchase price of $750,000 for the Nano Convertible Note and the common stock purchase warrants. The Company will receive interest on the Nano Convertible Note at the rate of 10% per annum payable upon conversion or maturity of the Nano  Convertible Note. The Nano Convertible Note shall mature on December 26, 2022.

The Company recorded an interest income receivable of approximately $1,000 on the Nano Convertible Note as of December 31, 2021.