Note 5 - Notes Receivable

9 Months Ended

Sep. 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 conversations with the CEO and former CEO of CytoBioscience, and has concluded that recovery of the note is in doubt and that it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the receivable. The Company has secured the note with lab equipment originally valued at

$1,290,000.

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. The Company obtained a judgement against CytoBioscience and has proceeded with court proceedings to claim the collateral equipment and to attempt to recover the original balance plus interest due under the note.