Note 2 - Notes Receivable

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

2

– NOTES RECEIVABLE

The Company had a secured promissory note receivable from CytoBioscience for

$1,112,524

(

“2017

Promissory Note”), 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 had

not

received any payments from CytoBioscience since the

first

quarter of

2019.

The Company had evaluated the feasibility of repayment and concluded that it was probable that the Company would 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

May 27, 2020,

the Company entered into an Asset Purchase Agreement with InventaBioTech, Inc. (“InventaBioTech”) and

two

of its subsidiaries, Soluble Therapeutics, Inc. (“Soluble”), and BioDtech, Inc. (“BioDtech”), and simultaneously completed the acquisition of substantially all of Soluble's and BioDtech's assets. In exchange, the Company issued

125,000

shares of common stock and waived all existing claims that the Company has or

may

have against InventaBioTech (f/k/a CytoBioscience, Inc.). Prior to the completion of the transaction, InventaBioTech owed the Company approximately

$1.29

million under the

2017

Promissory Note, which was secured by certain intellectual property and equipment useful in CRO. In connection with the asset purchase agreement, the Company recognized a gain on the note previously determined to be uncollectable of

$1,290,000

and recognized fixed assets of

$1,492,500.