Note 15 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

Note

15.

Subsequent Events

On

March

7,

2017,

the Company agreed to provide up to

$500,000

to Singular Payments, LLC, a Florida limited liability company, under a secured line of credit promissory note. Interest on the note does not accrue until the earlier of

May

31,

2017,

the date of closing and funding the Company’s proposed acquisition of Singular Payments or the termination of a non-binding letter of intent regarding the proposed acquisition, or until such mutually agreed upon extended date. Thereafter, interest will accrue at a rate of

ten

percent per annum. Upon an event of default, interest will accrue at the maximum lawful rate or

15%

per annum. The line of credit matures on

November

1,

2019.

If the Singular Payments acquisition closes before interest accrues any unpaid principal amount will be offset against the cash portion of the purchase price. If the acquisition does not close on or before interest accrues, any unpaid principal amount plus interest will have to be paid in

30

equal monthly installments. The note

may

be prepaid in whole or in part at any time and without a penalty.

The line of credit is secured by a security agreement of the same date granting a

first

security interest over all of Singular Payment’s property, inventory, proceeds, intellectual property, among others, a membership interest pledge agreement over

100%

of all Singular Payments, LLC membership interests, and a personal guaranty agreement by Vaden Landers, the sole owner of Singular Payments.