| Note Receivable - Related Parties |
Note 8 - Note Receivable – Related Parties
| |
|
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 (“ChubeWorkx”), 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. |
| |
|
|
| |
|
As of December 31, 2015, the Company established an allowance for doubtful accounts for notes receivable – related party of $1,299,609 which is reported as bad debt expense – related parties in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2015. |
| |
|
|
| |
|
On August 17, 2016, the Company entered into
a Settlement Agreement with ChubeWorkx which settled all pending claims between the companies. Under the terms of the Settlement
Agreement, the Company recovered the full outstanding principal amount in the current fiscal year in the form of $750,000 of BreathScan®
Alcohol Detector inventory – which the Company intends to subsequently sell – and the balance of $549,609 as a prepaid
royalty (Note 16). As a result of the Settlement Agreement, the Company reversed the allowance for doubtful note in the amount
of $1,299,609 which is included in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December
31, 2016.
For the year ended December 31, 2017 and 2016,
the Company has invoiced $21,600 and $- for the BreathScan® Alcohol Detector inventory that was recovered as part of the Settlement.
|
|