| UNSECURED NOTES PAYABLE |
NOTE 8. UNSECURED NOTES PAYABLE Unsecured notes payable at June 30, 2026 and 2025 consisted of the following: | | 2026 | | | 2025 | | | | (in thousands) | | Current debt: | | | | | | | 13.5% Unsecured note, interest only, due April 30, 2027 (2) | | $ | 200 | | | $ | - | | 13.5% Unsecured note, interest only, due October 31, 2027 (1) | | | - | | | | 100 | | 13.5% Unsecured note, interest only, due July 31, 2027(3) | | | - | | | | 100 | | Total current debt | | $ | 200 | | | $ | 200 | | | | | | | | | | | Long-term debt: | | | | | | | | | 13.5% Unsecured note, interest only, due July 31, 2027 (3) | | $ | 100 | | | $ | - | | 13.5% Unsecured note, interest only, due October 31, 2027 (1) | | | 100 | | | | - | | 13.5% Unsecured note, interest only, due April 30, 2027 (2) | | | - | | | | 200 | | Total long-term debt | | | 200 | | | | 200 | | Total unsecured notes payable | | $ | 400 | | | $ | 400 | |
(1) | Unsecured note payable for $100,000 to a third-party with interest payable monthly at 20%, principal originally due in full on October 31, 2014, extended to October 31, 2019, then extended to October 31, 2021. This note was repaid in full on October 31, 2021 and replaced with a new note from an entity controlled by the same lender with interest payable monthly at 13.5%, principal due in full on October 31, 2024. This note was extended in full on October 31, 2024 with the same lender with interest payable monthly at 13.5%, principal due in full on October 31, 2025. On October 28, 2025, this note was extended in full with the same lender with interest payable monthly at 13.5%, principal is due in full on October 31, 2027. Personally guaranteed by Louis Friedman, the Company’s CEO and principal shareholder. | | | (2) | Unsecured note payable for $200,000 to a third-party with interest payable monthly at 20%, principal originally due in full on May 1, 2013, extended to May 1, 2019, then extended to May 1, 2021. This note was repaid in full on April 30, 2021 and replaced with a new note from an entity controlled by the same lender with interest payable monthly at 13.5%, principal due in full on May 1, 2024. This note was extended in full on April 30, 2024 with the same lender with interest payable monthly at 13.5%, principal due in full on May 1, 2025. This note was again extended in full on May 1, 2025 with the same lender with interest payable monthly at 13.5%, principal due April 30, 2027. Personally guaranteed by Louis Friedman, the Company’s CEO and principal shareholder. | | | (3) | Unsecured note payable for $100,000 to an individual with interest payable monthly at 20%, principal originally due in full on July 31, 2013, extended to July 31, 2019, then extended to July 31, 2021. This note was repaid in full on July 30, 2021 and replaced with a new note from an entity controlled by the same lender with interest payable monthly at 13.5%, principal due in full on July 31, 2024. This note was extended in full on July 30, 2024 with the same lender with interest payable monthly at 13.5%, principal due in full on July 31, 2025. On August 20, 2025, this note was extended with the same lender with interest payable monthly at 13.5%, principal due in full on July 31, 2027. Personally guaranteed by Louis Friedman, the Company’s CEO and principal shareholder The June 30, 2025 amounts above exclude $453 of notes payable previously presented as unsecured notes payable that have been reclassified to secured notes payable (see Note 12). |
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