TERM LOAN

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 5.  TERM LOAN

On August 31, 2020, Peter L. Dalrymple, a member of our board of directors, paid-off in full the outstanding balance of a term loan we had with Wells Fargo Bank, N.A. As consideration for Mr. Dalrymple paying off the term loan on our behalf, we issued Mr. Dalrymple a $610,000 one-year secured promissory note. The secured promissory note bears interest of 6% per year with monthly payments of interest only due until maturity, when all unpaid interest and principal is due. This note is collateralized by all of our accounts receivable and a pledge of the stock of our wholly owned subsidiary, Quad Video Halo, Inc. The secured promissory note balance was $450,000 and $490,000 at June 30, 2021 and December 31, 2020, respectively.

During the three and six months ended June 30, 2021, the Company recorded $6,925 and $13,690, respectively, in interest expense on the Dalrymple note, representing all interest due through that date.