Quarterly report pursuant to Section 13 or 15(d)

Note Receivable - Related Party

v2.4.1.9
Note Receivable - Related Party
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Note Receivable - Related Party

Note 5 – Note Receivable – Related Party

 

On December 31, 2014 a note of $1,475,766 was issued to the Company in exchange for the Company’s open trade receivables from ChubeWorkx Guernsey Limited, a major shareholder. It is payable in sixty equal installments of $27,734 commencing January 1, 2015 and has an interest rate of 5% per annum. Installments due for January and February 2015 were received in the three months ended March 31, 2015. An issue with an invalid bank account number delayed the March payment, which was received along with the amount due for April 2015 on April 16, 2015. The amount due for May 2015 was received on May 5, 2015. Interest income received in the three months ended March 31, 2015 was $11,997 and is recorded in the interest and dividend income in the condensed consolidated statement of operations and comprehensive income.

 

In the event of default, the Company, at its sole discretion, has the right to redeem any and all Company shares owned by ChubeWorkx Guernsey Limited to satisfy the monies owed to the Company under this note.

 

The scheduled cash flow from the note is as follows:

 

    Principal     Interest     Total  
Next 12 Months   $ 291,684     $ 68,858     $ 360,542  
Next 13-24 Months     283,606       49,202       332,808  
Next 25-36 Months     298,115       34,693       332,808  
Next 37-48 Months     313,368       19,440       332,808  
Next 49-60 Months     245,502       4,103       249,605  
    $ 1,432,275     $ 176,296     $ 1,608,571  

 

Notes receivable – related party as of March 31, 2015 and December 31, 2014 is as follows:

 

    2015     2014  
Current   $ 291,684     $ 266,457  
Non-current     1,140,591       1,209,309  
    $ 1,432,275     $ 1,475,766