Note 3 - Notes Receivable

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Financing Receivables [Text Block]

3. Notes Receivable

In the quarter ended

September 30, 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

all of which has been advanced as of

March 31, 2019.

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. Upon exercising the Warrant Units, we are entitled to receive up to

fourteen

percent ownership of Common A Units in the company.

During

2018,

we advanced

$550,000

on

three

separate simple Promissory Note(s) and in

2019

we advanced an additional

$500,000

to the aforementioned identity and professional services company. The Notes bear interest at the rate of

6.0

percent annually with an original maturity date

six

months from the date of funding the Notes. In

March 2019,

the parties agreed to extend the maturity date of these Promissory Notes to

December 31, 2020.

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.