Note 2 - Note(s) Receivable

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note

2.

Note(s) Receivable

On

February

2,

2016,

the Company entered into a loan and security agreement with

C2Go,

Inc., a Nevada corporation, pursuant to which the Company agreed to loan a principal amount of

$200,000

to

C2Go

with an interest rate of

10%

per annum for a term of

18

months.

C2Go’s

obligations under the loan and security agreement are secured by a

first

lien on all assets of

C2Go.

The debt is senior, and any future debt incurred by

C2Go

must be subordinated to the debt of the loan and security agreement.

Upon maturity of the debt,

C2Go

is required to issue to the Company

5%

of the issued and outstanding shares of common stock of

C2Go

as of the date of issuance, on a fully diluted basis, giving effect to any convertible securities, warrants, etc., such shares being validly issued, fully-paid and non-assessable shares for no additional consideration.

Upon an event of default the interest rate under the loan and security agreement will rise to

18%

per annum. As of

March

31,

2017,

the Company has not recorded an allowance for credit losses on this note receivable.

On

March

7,

2017,

the Company agreed to provide

$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, and 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. As of

March

31,

2017

the Company has not recorded an allowance for credit losses on this note receivable.