Note 5 - Notes Receivable

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

5

– NOTES RECEIVABLE

In

July 2017,

the Company began to advance funds to CytoBioscience for working capital for CytoBioscience’s business. All the notes receivable bear simple interest at

8%

and were due in full on

December 31, 2017.

All the notes are covered by a security interest in all of CytoBioscience’s accounts receivable and related rights in connection with all of the advances. The principal amount of the secured promissory notes receivable from CytoBioscience totaled

$1,070,000

as of

December 31, 2017.

In

March 2018,

the Company executed a new note replacing all previous CytoBioscience notes for

$1,112,524,

plus interest paid monthly at the per annum rate of (

8%

) on the principal amount. The secured note has a term of

two

years with the unpaid principal and unpaid accrued interest due and payable on

February 28, 2020.

In

October 2017,

the Company advanced

$600,000

for working capital for Helomics’ business. Additionally, in

December 2017,

the Company advanced

$67,512

to De Lage Landen as

fifty

percent (

50%

) down payment for a lease to purchase certain equipment. The note is covered by a security interest in certain equipment of Helomics. In

March 2018,

the Company converted

$500,000

of the note receivable into

833,333

shares of common stock for an additional

5%

interest in Helomics Corporation. The Company now has an equity stake in Helomics totaling

25%.

The Company is currently negotiating terms for payment on the remaining

$167,512

plus interest. Upon completion of the merger with Helomics the note would be eliminated on a consolidated basis.