Note 10 – Loans Payable

In May 2016, the Company and Mr. Richard A. Bianco, the Company’s Chairman, President and Chief Executive Officer (“Mr. R. A. Bianco”) entered into an agreement for Mr. R. A. Bianco to provide to the Company a secured working capital line of credit of up to one million dollars ($1,000,000) or additional amount(s) as may be necessary and agreed to on an as needed basis, if and when necessary, subject to customary and market terms and conditions to be agreed upon at such time (the “WC Agreement”).

Pursuant to the WC Agreement, Mr. R. A. Bianco made several loans to the Company for use as working capital. The loans were due on the earlier of the date the Company received funds from any source sufficient to pay all amounts due under the loans, including accrued interest thereon, or the due date noted below. Accrued interest payable associated with the loans was included in accounts payable and accrued liabilities in the Company’s consolidated balance sheet.

In January 2018, pursuant to the WC Agreement, Mr. R.A. Bianco made an additional loan to the Company, as noted in the condensed consolidated statement of cash flows, for use as working capital as reflected and in accordance with the same terms of the loans payable noted herein.

Information regarding the loans payable is as follows:

	Date of Loan	Rate			Due Date	June 30, 2018		December 31, 2017
Loan payable	January 2017		5.25	%	December 31, 2019	$	-	$	500,000
Loan payable	April 2017		5.25	%	December 31, 2019		-		500,000
Loan payable	June 2017		5.25	%	December 31, 2019		-		500,000
Loan payable	September 2017		5.25	%	December 31, 2019		-		150,000
Loan payable	October 2017		5.25	%	December 31, 2019		-		446,000
Loan payable	December 2017		5.25	%	December 31, 2019		-		200,000
						$	-	$	2,296,000

Information regarding accrued interest expense on the loans payable is as follows:

(in thousands)		December 31, 2017
Accrued interest expense		$	67

The amounts noted above pursuant to the WC Agreement are distinct from the line of credit agreement for the 111 West 57^th Property as discussed in Note 4 herein and distinct from the Litigation Funding Agreement amounts as discussed in Note 9 herein.

In January 2018, in connection with the sale by the Company of its commercial office building in Greenwich, Connecticut, the Company repaid the full amount of the working capital loan, plus accrued interest aggregating $2,623,000 to Mr. R. A. Bianco, and the working capital line of credit agreement was terminated. See Note 3 herein for additional information.