Note 8 – Loan(s) Payable – Related Party – BARC Investments LLC

 

The Company and BARC Investments, LLC, (“BARC”) an affiliate of the Company owned and controlled by two of the Company’s directors and their sibling, entered into an agreement(s) for BARC to provide senior loan(s) to the Company for working capital. The loan(s) are due on the earlier of the date the Company receives funds from any source, (excluding funds received by the Company by any litigation funding entity to fund any of the 111 West 57^th legal proceedings), sufficient to pay all amounts due under the loan(s), including all accrued interest thereon, including without limitation, from a settlement of the 111 West 57^th legal proceedings or (b) the date(s) indicated herein.

 

The Company and BARC further agreed that amounts due pursuant to the loan(s) plus interest can be converted by BARC, at its option, into a litigation funding agreement pari-pasu with any litigation funding agreement entered into by the Company with a litigation funding entity.

 

Information regarding the loan(s) payable – related party - BARC, outstanding as of December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in Note 10, is as follows: ($ in thousands)

 

 

Information regarding accrued interest expense on the loan(s) payable – related party – BARC, outstanding prior to the litigation funding agreement(s), is as follows:

 

 

For additional information regarding the Company’s litigation funding efforts, see Note 1. For additional information regarding the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see Note 3 and Note 6. For additional information regarding the March 2026 loan(s) payable conversion into a litigation funding agreement and the related accrued interest payable conversion to a note payable see Note 10.

The accrued interest expense outstanding which was converted into a loan(s) payable - related party – BARC, in March 2026, in connection with the litigation funding agreement as further discussed in Note 10 below, is as follows: ($ in thousands)

 

 

Information regarding accrued interest expense on the loan(s) payable – related party - BARC is as follows: