Note 4 - Promissory Note

6 Months Ended

Mar. 31, 2020

Notes to Financial Statements

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

Note

4

– Promissory Note

The Company completed a sale of its former Cable TV reporting segment on

June 30, 2019. 

In the

first

quarter of

2020,

Leveling

8

Inc. (“Leveling

8”

) paid the Company the

first

installment of

$0.7

million, including interest of

$0.1

million, under the promissory note as part of the sale of the Cable TV segment to Leveling

8.

David Chymiak, a director and substantial shareholder of the Company, personally guaranteed the promissory note due to the Company and pledged certain assets (directly and indirectly owned) to secure the payment of the promissory note, including substantially all of David Chymiak’s Company common stock.  On

March 10, 2020,

the Company entered into a loan agreement with its primary financial lender for

$3.5

million to monetize a portion of this promissory note (see Note

8

).

The remaining promissory note will be paid in semi-annual installments over

five

years including interest of

6%

as follows:

Fiscal year 2020	$	700,000
Fiscal year 2021		1,400,000
Fiscal year 2022		940,000
Fiscal year 2023		940,000
Fiscal year 2024		2,970,000
Total proceeds		6,950,000
Less: interest to be paid		(1,159,262	)
Promissory note principal balance	$	5,790,738