Quarterly report pursuant to Section 13 or 15(d)

Note Receivable - Related Party

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Note Receivable - Related Party
9 Months Ended
Sep. 30, 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 the periods January through August 2015 have been received. Interest income received in the three and nine months ended September 30, 2015 was $10,878 and $45,715 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 (Note 18).

 

The scheduled cash flow from the note is as follows:

 

      Principal       Interest       Total  
Next 12 Months   $ 299,052     $ 61,489     $ 360,541  
Next 13-24 Months     290,770       42,038       332,808  
Next 25-36 Months     305,647       27,161       332,808  
Next 37-48 Months     321,284       11,524       332,808  
Next 49-60 Months     82,857       345       83,202  
    $ 1,299,610     $ 142,557     $ 1,442,167  

 

Notes receivable – related party as of September 30, 2015 and December 31, 2014 is as follows:

 

      2015       2014  
Current   $ 299,052     $ 266,457  
Non-current     1,000,558       1,209,309  
    $ 1,299,610     $ 1,475,766