Note 6 - Notes Receivable

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

6–

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 were 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 of

2019.

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 does

not

anticipate any cash recovery through the sale of this equipment and has recorded a reserve for the full value of the note receivable. The Company obtained a judgment 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. On

March 2, 2020,

the Company signed a term sheet with InventaBio Tech and its subsidiary Soluble Therapeutics, LLC (“Soluble”) to acquire certain assets in exchange for termination and waiver of all remaining amounts due and payable under the CytoBioscience Note. See Note

13

- Subsequent Events for further discussion.

During

2018,

the Company converted

$500,000

of its note receivable from Helomics into

833,333

shares of Helomics common stock for an additional

5%

interest in Helomics, giving the Company an equity stake in Helomics totaling

25%.

Also, during

2018,

the Company advanced an additional

$997,500

to Helomics under the same note. The balance due to the Company at

December 31, 2018

was

$1,165,013

in principal, plus interest of

$29,215.

During

2019,

the Company advanced Helomics

$975,000.

As of

April 3, 2019,

the Company had a principal balance of

$2,140,013,

plus interest of

$70,369

due from Helomics. On the Company’s balance sheet there was a reduction to the loan of

$1,190,967

due to the cumulative equity method investments losses incurred from Helomics ownership; see Note

1.

There were

no

further advances to Helomics prior to the completion of the merger. Upon completion of the merger with Helomics all intercompany notes were eliminated; see Note

2

– Helomics Acquisition.