LOANS FROM RELATED PARTY |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Loans From Related Party | |
LOANS FROM RELATED PARTY | NOTE 16 — LOANS FROM RELATED PARTY
Dolphin Entertainment, LLC (“DE LLC”), an entity wholly owned by the Company’s Chief Executive Officer, William O’Dowd (the “CEO”), previously advanced funds for working capital to Dolphin Films. In prior years, Dolphin Films entered into a promissory note with DE LLC (the “Original DE LLC Note”) in the principal amount of $1,009,624, which was payable on demand. The Original DE LLC Note was payable on demand and accrued interest at a rate of 10% per annum. The Original DE LLC Note allowed for additional advances of working capital during its term. Additional funds in the amount of $98,249 were advanced to the Company prior to 2021 and on June 15, 2021 the Company exchanged the Original DE LLC Note for a new note with an initial maturity date of July 31, 2023 and a principal amount of $1,107,873 (“New DE LLC Note” and together with the Original DE LLC Note, “the DE LLC Notes”). Other than the change in maturity date and principal amount, there were no other changes to the interest or any other terms of the Original DE LLC Note. On June 30, 2022, the New DE LLC Note’s maturity date was extended to December 31, 2026.
For the years ended December 30, 2022 and 2021, the Company did not repay any principal balance of the New DE LLC Note. During both the years ended December 31, 2022 and 2021, the Company recorded interest expense related to the DE LLC Notes $110,787 on its consolidated statements of operations and repaid $81,621 of interest during the year ended December 31, 2021. There were no interest repayments during the year ended December 31, 2022.
As of both December 31, 2022, and 2021, the Company had a principal balance of $1,107,873, and accrued interest of $166,637 and $55,849, respectively, relating to the DE LLC Notes.
|