Note 3 - Notes Receivable

9 Months Ended

Sep. 30, 2017

Notes Receivable

– On

September 18, 2017,

we entered into a Loan Agreement with a privately-held identity and professional services company with ties to the FinTech industry. We committed to lend up to

$1,500,000

with an initial advance of

$750,000.

Subsequent advances

may

occur once per fiscal quarter in increments of

$250,000

until

December 31, 2018.

The loan bears interest at the rate of

6.0

percent annually with the maturity date for each Promissory Note on the

fourth

anniversary of funding, extendable by

one

additional year at the borrower’s election. We are entitled to purchase, at a nominal price, certain Warrant Units in conjunction with each advance.