NOTE 4 – Film Production Loans

Senior Mezzanine Loan Agreement with Barron’s Cove Movie, LLC

In February 2024, the Company loaned $200,000 to Barron’s Cove Movie, LLC pursuant to a Senior Mezzanine Loan Agreement. $20,000 of the loan proceeds will be used to pay producer fees, including $10,000 to Mr. MacGregor. The $200,00 loan, plus a premium of twenty percent (20%), is due and payable on that date which is the earlier of either (a) twelve (12) months from the date of the loan, or (b) from allocable proceeds received by Barron’s Cove Movie, LLC related to the movie, whichever occurs first.

Senior Loan Agreement with PNP Movie, LLC

PNP Movie, LLC senior loan (default; written off). In February 2024, the Company agreed to lend $97,475 to PNP Movie, LLC for a feature-length motion picture; in April 2024, the agreement was amended to provide an additional $42,525 and to use best efforts to increase aggregate financing to $597,475. As of December 31, 2025, cumulative advances totaled $196,200 ($196,200 at December 31, 2024). Under the agreement, principal plus a 20% premium was due on the earlier of twelve months from funding or receipt of allocable project proceeds.

The loan has been in default for more than 120 days, and management believes there is significant uncertainty regarding completion or release of the film. Accordingly, during 2025, the Company recorded a full write-off of $196,200 as an impairment loss in the statements of operations. No recoveries were recognized as of the reporting date.