Notes Payable |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Debt Disclosure [Abstract] | |
| Notes Payable | NOTE 8 – Notes Payable
Note Payable – Mr. MacGregor
During 2025, the Company borrowed $353,000 from and repaid $87,000 to Mr. MacGregor pursuant to a master loan agreement. During 2024, the Company borrowed $103,000 from and repaid $30,000 to Mr. MacGregor pursuant to the same master loan agreement. The master note agreement accrues interest at a rate of 4.4% due and payable in a lump sum upon maturity of the obligation. This note is not convertible.
Noah Morgan Private Family Trust Loan Agreement (“NMPFT”)
During 2025 and 2024, Company borrowed $29,000 and $280,000, respectively, from a family trust related to Mr. MacGregor pursuant to a master loan agreement. The master note agreement accrues interest at a rate of 4.4% due and payable in a lump sum upon maturity of the obligation. This note is not convertible. $200,000 of these loan proceeds were used to fund the senior mezzanine loan to Barron’s Cove Movie, LLC.
Note Payable – Board Member
During 2024, the Company borrowed $5,000 from a member of the Board of Directors. This note was repaid in full during 2025.
Economic Injury Disaster Loan
In March 2021, the Company entered into an Economic Injury Disaster Loan (“EIDL”) with the U.S. Small Business Administration. Although the stated principal amount was $150,000, the Company has historically carried the obligation at $149,900, reflecting a $100 UCC filing / third-party handling charge deducted from the loan proceeds at origination. The loan bears interest at 3.75% per annum, is secured by substantially all of the Company’s tangible and intangible assets, and is payable over 30 years.
Commercial Line of Credit. In April 2024, the Company entered into a line of credit agreement with American Express. Borrowings bear interest at rates ranging from approximately 16.09% to 34.3% and are personally guaranteed by Mr. MacGregor.
Labrys Fund II promissory note (Sept. 22, 2025). The Company issued an unsecured $115,000 promissory note to Labrys Fund II, L.P. on September 22, 2025. The note matures twelve months from issuance and permits prepayment within 181 days at stated premiums. Upon default, the balance is immediately due at 150%. Conversion is permitted only upon default or missed amortization, at 65% of the lowest traded price over the twenty prior trading days, subject to ownership caps and share-reserve requirements. Amortization begins March 23, 2026 with monthly payments through maturity.
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