NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2021

NOTES RECEIVABLE

NOTES RECEIVABLE

NOTE 5. NOTES RECEIVABLE

Our notes receivable consisted of the following:

	December 31,
	2021		2020
CCR Note	$	1,608	$	375,000
BB Note		40,000		100,000
NBC Note		75,000		—
Total Principal		116,608		475,000
Allowance for doubtful accounts		(43,608)		(125,000)
Unamortized loan origination fee		—		—
		73,000		350,000
Less: Current portion		(73,000)		(350,000)
Long-term portion	$	—	$	—

On August 2, 2021, as part of the closing of the sale of NBC, we agreed to a note receivable of $75,000 due August 2, 2022. There is no interest associated with this receivable per the agreement. This note receivable was collected in full as of the issuance of these financial statements.

In March 2019, we agreed to loan an aggregate of up to $375,000 to Consolidated C.R., LLC (“CCR”) pursuant to the terms of a convertible promissory note (“CCR Note”), bearing interest at 12% per annum, collateralized by substantially all the assets of CCR and subject to a maturity date of September 2020. As of May 30, 2019, we had loaned the entire available amount of $375,000 to CCR pursuant to the CCR Note. CCR is a vertically integrated medical cannabis company located in San Juan, Puerto Rico. The CCR Note included a loan origination fee of $15,000, which was being recognized as interest income over the term of the agreement and has been fully amortized. This loan went into default in April 2020, which increased the interest rate to 18% per annum. As of December 31, 2021 we received the majority of the payment of the outstanding principal and interest of the note receivable.

On January 3, 2019, the Company authorized an unsecured loan of $100,000 to Beacher Brewing, LLC (“BB”) pursuant to the terms of a promissory note (“BB Note”), bearing interest at 11% per annum and a maturity date of January 3, 2020. Interest is due in advance at the beginning of each quarter. On December 13, 2019, the Company agreed to extend the maturity date to January 3, 2021. During 2021 we negotiated a payment amount of $60,000 and wrote off the remaining balance to allowance for doubtful accounts. Payment was considered to be in full as of December 31, 2021.