No, Welch is not paid off, at least not per this 8-k and not as of January 31. (it is possible he has been paid since then, but that has not been disclosed yet. They have generated around $9 million (net) in the private offering during January and February).

If you look at the Dec 7 8-k, it will describe the history of the backstop and the warrants and subsequent re-pricing. https://www.sec.gov/ix?doc=/Archives/edgar/da...130x8k.htm

If you click the link in that 8-k, you will get to the Exhibit, which describes the calculation for this last batch of 7.5 million. The only way that Welch would get the entire 7.5 million is if CYDY paid zero cash to Welch (as I understand the example). So, based on that, I believe that, as of January 31, nothing has been repaid to Welch. Maybe a subsequent filing will tell us that it has been paid. They have raised enough in the private offering to pay him.

Thus far, this "backstop" has cost CYDY 45 million warrants, which all have a strike price of 10 cents. There we two slugs of 15 million in the initial deal, and now two slugs of 7.5 million since December.

Welch can exercise all of those warrants and own 5% of the company for $4.5 million.