NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2021

NOTES RECEIVABLE

NOTES RECEIVABLE

NOTE 6 – NOTES RECEIVABLE

Due to the impact of COVID-19 on its operations, Lineal notified the Company that it currently has insufficient liquidity to make scheduled interest payments due under the notes. The Company is in negotiations with Lineal to restructure the notes receivable and an allowance has been applied to the full principal and accrued interest of these notes as of December 31, 2021 and 2020.

The following table summarizes the Lineal notes receivable as of December 31, 2021 and 2020:

	December 31,
	2021			2020
Note receivable from Lineal Star Holdings, LLC pursuant to a Promissory Note dated effective December 31, 2019, in the original principal amount of $1,539,719, accruing annual interest of 10.5%, due quarterly beginning on March 31, 2020, maturing December 31, 2021. The Company has ceased recording accrued but unpaid interest, and has reserved the full balance of the note as of December 31, 2021 and 2020.
See also “Note 13 – Lineal Merger Agreement and Divestiture”.		1,539,719			1,539,719
Note receivable from Lineal Star Holdings, LLC pursuant to a Promissory Note No. 2 dated effective December 31, 2019, in the original principal amount of $800,000, accruing annual interest of 8%, due quarterly beginning on March 31, 2020, maturing December 31, 2021. The Company has ceased recording accrued but unpaid interest, and has reserved the full balance of the note as of December 31, 2021 and 2020.
See also “Note 13 – Lineal Merger Agreement and Divestiture”.		800,000			800,000
Total notes receivable		2,339,719			2,339,719
Less: allowance for doubtful collection		(2,339,719	)		(2,339,719	)
Total notes receivable - net	$	-		$	-