Note 3 - Notes and Other Receivables

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE

3.

NOTES AND OTHER RECEIVABLES

Notes and other receivables as of

December 31, 2019

and

September 30, 2019,

consisted of the following: 

	December 31, 2019			September 30, 2019
Notes and other receivables from WGP, a licensed medical marijuana cultivator; $673,294 note secured by real and personal property of the borrower, interest rate of 18.0%; accrued consulting and legal fees of $206,675, construction advances of $332,357 and accrued interest of $549,349 at December 31, 2019 and September 30, 2019. Net of reserves of $0 and $1,761,675 as of December 31, 2019 and September 30, 2019, respectively. All amounts are due and payable immediately.	$	1,757,257		$	-
Related party note receivable from BASK, a non-profit corporation, interest rate of 18.0%; monthly principal and interest payments of $4,422, maturing in 2023.		143,956			148,763
		1,901,213			148,763
Less: Current portion		(1,786,769	)		(32,270	)
	$	114,444		$	116,493

The notes and other receivables from Wellness Group Pharms (“WGP”) were fully reserved as of

September 30, 2019

due to ongoing disputes between the Company and WGP. The Company filed a Demand for Arbitration against WGP on

April 7, 2017.

On

January 18, 2018,

the arbitration panel awarded the Company

$1,045,000

plus interest at the rate of

18%

per year from

April 18, 2015

to

March 18, 2018

for

$550,000.

In addition to the principal and interest awarded of

$1,595,000,

the Company was also awarded its attorneys’ fees and arbitration fees. The Company as of

December 31, 2019,

reversed the previously recorded reserve on the receivable with WGP in the amount of

$1,761,675

as the amount was collected subsequent to

December 31, 2019.

See Note

10.