Note 5 - Notes Receivable

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

5

– NOTES RECEIVABLE

The Company has a secured promissory note receivable from CytoBioscience for

$1,112,524,

plus interest paid monthly at the per annum rate of (

8%

) on the principal amount. Unpaid principal and unpaid accrued interest on the note are due and payable on

February 28, 2020.

In

2019,

CytoBioscience and its parent company, InventaBioTech, paid interest in the

first

quarter due through

April 2019.

The Company has

not

received any payments from CytoBioscience since the

first

quarter. The Company has evaluated the feasibility of repayment, including direct conversation with the CEO and former CEO of CytoBioscience, and has concluded that recovery of the note is in doubt. The Company has a Confession of Judgement signed by CytoBioscience and has filed with the courts. The Company has secured the note with lab equipment originally valued at

$1,290,000.

Based on management’s judgements, the Company believes it will be able to raise

$250,000

through the sale of this equipment and has recorded a reserve for the difference. Management has concluded that it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the receivable.

As of

April 3, 2019,

the Company had a principal balance of

$2,140,013,

plus interest of

$70,369

due from Helomics. Upon completion of the merger with Helomics all intercompany notes were eliminated; (see Note

2

).