Took a while but I figured out VAYK acquisition debt note. The below is my interpretation after reading VAYK's filings over the weekend:
In 2019 VAYK borrowed $1.3 million from a third-party and used $1.25 million of that $1.3 million to acquire 10 properties in Cuba. This answered @Slojab 's question "where did VAYK get that $1,250,000". Very simple: they borrowed money and re-invested them.
Borrowed money is their Note Payable. Invested money is their Note Receivable. The latter, I assume, is mortgaged on the Cuban properties.
This is an audacious plan. At that time people talked about normalization of US-Cuba relationship under Obama/Clinton. If that happened, those properties' value would go rocket high, probably 5X - 10X. VAYK would make $5 - 10 million, which explains its stock soared to above $0.02, and the company is valued at $12 million. But Trump won, and he embargoed Cuba again.
The problem, as far as I can see it, is VAYK borrowed money to buy properties, and they probably have defaulted on their loan. So they are likely subject to penalties etc. That's why their Note Payable, as of today, is bigger at $1.9 million than their Notes Receivable ($1.6 million). In short their is an interest gap.
But that is not as bad as @Slojab wanted us to believe. The Note is 5 years old. Over 5 years it has only accumulated $300K interest gap. That's NOT a "huge debt". Nor is it a "death spiral". And the company says they are negotiating on more debt forgiveness and that probably covers this $300K.
IMO the company has made the right decision to walk away from the Cuban deal and is refocusing on domestic Airbnb market. They have an APP for that purpose. They need to focus on developing that APP and deliver on their promise of building up a $20 million portfolio of Airbnb. If so, the valuation may go back to $15 -20 million and their share price may bounce back to above $0.02.
