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NOTES RECEIVABLE
9 Months Ended
Sep. 30, 2023
Credit Loss [Abstract]  
NOTES RECEIVABLE

NOTE 5 — NOTES RECEIVABLE

 

The notes receivable held by the Company are unsecured convertible note receivables from JDDC Elemental LLC (“Midnight Theatre”) (the “Notes Receivable”). The Notes Receivable are recorded at their principal face amount plus accrued interest. Due to their short-term maturity and conversion terms, these have been recorded at the face value of the note and an allowance for credit losses has not been established.

 

As of September 30, 2023, the Notes Receivable amounted to $4,608,962, inclusive of $500,882 of interest receivable, and are convertible at the option of the Company into Class A and B Units of Midnight Theatre. The Notes Receivable each originally had maturity dates six months from their issuance date, but the maturity date for all of the Notes Receivable has been extended to September 30, 2024. The Notes Receivable allow the Company to convert the principal and accrued interest into Class A and B Units of Midnight Theatre on the maturity date. In connection with the Notes Receivable, the Company recorded $103,546 and $91,711 of interest income for the three months ended September 30, 2023 and 2022, respectively, and $307,262 and $204,928 for the nine months ended September 30, 2023 and 2022, respectively. During both the three and nine months ended September 30, 2023, Midnight Theatre made an interest payment of $125,000 related to the Notes Receivable. Subsequent to September 30, 2023, Midnight Theatre made interest payments of $12,500 related to the Notes Receivable.