Convertible Debentures Payable

12 Months Ended

Dec. 31, 2021

Notes Payable

Convertible Debentures Payable

8.Convertible Debentures Payable:

In May 2008, LIC purchased $703,000 in principal amount of the Company’s convertible debentures from the previous debenture holder.  The balance of the outstanding convertible debentures in the amount of $797,000, were held by Love-1989.  The debentures held by Love-1989 and LIC were secured by a second mortgage behind PGIP on the 366 acres retained by the Company and a security interest behind that held by PGIP in the restricted proceeds escrow.  The total debentures balance of $1,500,000 carried a maturity date of July 8, 1997 and were in default as of December 31, 2015.  In 2016 the 366 acres were sold and the primary lender obligation to PGIP was respectively paid, in addition to the convertible debentures principal of $1,500,000 and a portion of the accrued interest.  Interest on the debentures accrued at the rate of fourteen percent compounded quarterly until the principal was paid in 2016.

During the years ended December 31, 2021 and 2020 the Company paid $50,000 and $125,000, respectively of accrued interest for the related party collateralized convertible debentures.  

The remaining accrued interest is $52,740,000 and $52,790,000 as of December 31, 2021 and 2020.