|6 Months Ended|
Jun. 30, 2017
|Notes to Financial Statements|
|NOTE 6. NOTES RECEIVABLE||
During 2016, the Company made two investments in SOLX, Inc. (SOLX), a Massachusetts-based, privately-held medical device company that develops innovative surgical technologies to treat refractory glaucoma and preserve vision. The Company purchased $200,000 and $800,000 in Senior Convertible Promissory notes, maturing October 1, 2017. The notes carry an interest rate of 10%. No periodic interest payments will be made, upon maturity the principal balance and the accrued interest will be paid unless converted to equity. On a fully converted basis, the principal represents about a 10% interest in SOLX. Of the 10% interest, 3% has been assigned to K4 Enterprise, LLC (K4). During the six months ended June 30, 2017, the Company purchased an additional note from SOLX in the amount of $36,771.
The Company has been issued a warrant to purchase Series A Preferred Stock or Series A-2 shares of Preferred stock of SOLX. The warrant allows the Company to purchase 35% of the face value of the Company investment at a price of $0.8170 for Series A Preferred or $0.940 for Series A-2 Preferred stock. The expiration date is the earlier of (i) December 6, 2026, (ii) the closing the initial public offering (IPO) of the SOLX Common Stock,(iii) the closing of the sale or substantially all of the assets of SOLX. The Company accrued interest income of $58,693.
The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.
Reference 1: http://www.xbrl.org/2003/role/presentationRef