Note 2 - Notes Receivable

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

2

– 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 and 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. During

2019,

the Company recorded a loss on this note for the uncollected balance.

On

March 2, 2020,

the Company signed a term sheet with InventaBioTech to acquire certain assets including, but

not

limited to, certain intellectual property relating to CRO services and technology, certain equipment useful in such services and technology and all other assets held by its subsidiary Soluble Therapeutics, LLC relating to CRO as well as all intellectual property and other assets held by BioDtech, Inc., a related party to InventaBioTech, in exchange for termination and waiver of all remaining amounts due and payable under the note receivable from CytoBioscience and

125,000

shares of the Company’s common stock. The transaction closed on

May 27, 2020.

See

Note

11

– Subsequent Events

.