Note 12 - Note Receivable Due From Distributor

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables, Excluding Allowance for Credit Losses [Text Block]

1

2

. Note Receivable Due From Distributor

In

March 2012,

we purchased a note and mortgage (“Note”) from a real estate investment management firm on certain properties in Wyoming and Idaho for

$2

million. In

May 2012,

we entered into a Loan Modification Agreement (“LMA”) with the Note’s original and present borrower (“Borrower”) to restructure the Note’s principal amount due and related terms. The LMA terms are for a principal balance due of

$2

million with interest only payments made monthly in

2012.

The LMA’s interest rate is the greater of

6%

or prime and there is

no

prepayment penalty for voluntary principal payments. Concurrently, with the execution of the LMA, we entered into a Security Agreement with the Borrower in which repayment of the LMA is secured by the Borrower’s Reliv distributorship business.

As originally structured, beginning in

2013,

the LMA was to require monthly payment of principal and interest under a

five

-year amortization period. In

February 2013,

while retaining our right to require Borrower’s compliance with the LMA’s terms, we agreed to a verbal modification in the payment schedule in which the Borrower makes monthly payments of principal and interest under a

fifteen

-year amortization period. The outstanding balance of the note receivable was

$1,282,072

and

$1,405,112

as of

December 31, 2019

and

2018,

respectively.