Note 2 - Equity Method Investment

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE

2

– EQUITY METHOD INVESTMENT

The Company has an equity method investment in Helomics. Summarized financial information for Helomics is presented below:

Helomics Holdings Corporation

	December 31, 2018
Current assets	$	419,266
Non-current assets	$	2,046,347
Total assets	$	2,465,613
Current liabilities	$	12,247,174
Total liabilities	$	12,247,174

	For the Year-ended Ended
	December 31, 2018
Revenue	$	523,546
Gross margin	$	214,426
Net loss on operations	$	(5,056,725	)
Net loss	$	(9,452,835	)
Net Loss to investee	$	(7,159,255	) 1

1

The loss to investee was calculated at

80%

for the initial period of ownership,

January 11, 2018 –

February 27, 2018,

and then at

75%

for the remainder of the

twelve

-month period at the current equity investment percentage owned by the Company.

Helomics’

first

year predominantly included diagnostic revenue only. The contract research organization and D-CHIP Artificial Intelligence products are in the process of launching and have generated approximately

$31,000

of revenue in the year-to-date.

The Helomics loss reduces the equity method investment asset on the balance sheet. The recorded investor losses have exceeded the equity method investment originally recorded total. As such, the equity method investment recorded to the balance sheet has been reduced to

zero

, and all subsequent losses reduced the note receivable due from Helomics. The note receivable on the balance sheet includes

$413,683,

not

including interest, for Helomics. The actual note due to the Company as of

December 31, 2018

is

$1,165,013.

The amount exceeding the original equity method investment and thus reducing the note receivable balance is

$751,330.