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Note 5 - Notes Receivable
 12 Months Ended
Dec. 31, 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.
CytoBioscience was current in its payments to the Company through and including
July 2018.
The Company had
not
received the scheduled interest payments from CytoBioscience for
August
through yearend. On
September 27
and
28,
2018
CytoBioscience, through its parent company (WestMountain; now named InventaBioTech, OTC symbol INVB), made public filings indicating that their notes payable was in default. In
October 2018,
CytoBioscience communicated to the Company that CytoBioscience is raising capital that it believes will allow it to resume debt service payments, and that CytoBioscience wishes to negotiate an extension to the note. The Company has reached agreement with CytoBioscience on repayment and in
February
and
March 2019
received payments towards the interest due and a portion of the principal. As of
December 31, 2018,
the Company does
not
believe a reserve is needed.
 
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, a vendor of Helomics, as a
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. The Company now has an equity stake in Helomics totaling
25%.
 
In
September 2018,
the Company advanced an additional
$60,000
for working capital for Helomics’ business. The balance due to the Company is
$163,468,
plus interest as of
September 30, 2018.
Subsequently in
October 2018,
the Company advanced
$907,500
for working capital for Helomics’ business. In
December 2018,
the Company advanced
$30,000
to Helomics under the same note. The balance due to the Company at
December 31, 2018,
is
$1,165,013
in principal, plus interest of
$29,215.
On the balance sheet there is a reduction to the loan of
$751,330
due to the equity method accounting losses incurred from Helomics ownership; see Note
2.
In
January
and
February 2019,
the Company also advanced Helomics
$305,000.
In
March 2019,
the Company advanced an additional
$420,000
to Helomics from the Form S-
3
public offering that netted the Company approximately
$1.1M.
The balance to date owed by Helomics is
$1,890,013
plus interest. The Company expects that additional advances will be required before the merger is complete. All additional advances are covered by the security interest in certain equipment of Helomics. In addition, Helomics pledged all of its assets as security for the Company’s convertible secured note financing. Upon completion of the merger with Helomics all intercompany notes would be eliminated in their entirety.