Note 6 - Notes Receivable

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Financing Receivables [Text Block]

6. 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

and have advanced

$1,500,000

and

$1,250,000

as of

December 31, 2018

and

2017,

respectively. 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 of such Promissory Note, 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. In addition, during

2018,

we advanced an additional

$550,000,

on

three

separate simple Promissory Note(s) each bearing interest at the rate of

6.0

percent annually with the maturity date

six

months from the date of funding the Note. During the

third

and

fourth

quarter of

2018,

we extended the maturity date by

six

months on a

$250,000

loan and

$225,000

loan.

In the quarter ended

March 31, 2018,

we entered into a Convertible Loan Agreement with a private limited India based company in the FinTech industry. We committed to lend up to

$435,000

with an initial advance of

$235,000.

The loan bears interest at the rate of

5.0

percent annually with the maturity date on the

third

anniversary of funding of such Promissory Note. We are entitled to convert the principal on the initial note for up to

ten

percent ownership of shares of the company.