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RELATED PARTY AND FORMER OFFICERS NOTES PAYABLE	12 Months Ended
Dec. 31, 2016
Notes to Financial Statements
Note 3. RELATED PARTY AND FORMER OFFICERS NOTES PAYABLE	The former Chief Operating Officer has a notes payable balance totaling $450,000 at December 31, 2015. The loan bears interest at 5.5% per annum and was initially due December 31, 2002 and have been mutually extended. Under the terms of the note extension dated December 12, 2007, the loan bears interest at 5% per annum and are now due. On December 31, 2016, the Company wrote off the entire $450,000 balance of the note payable and $312,500 of interest accrued, thereupon. The Company therefore recognized a gain on forgiveness of debt in the amount of $762,500. On November 10, 2016, the Company, via Imagion, its wholly-owned subsidiary, entered into a Note Purchase Agreement with Interim Investors, pursuant to which Imagion would issue promissory notes for any amounts borrowed under the Agreement. The Interim Investors may invest up to a total of $500,000 under the Note Purchase Agreement. The Note accrue interest at the rate of 8% per annum, provided, however, in the event of a default, interest shall accrue at 10% per annum. As of December 31, 2016, the Company borrowed a total of $275,000. Interest expense and accrued interest during the year ended December 31, 2016 was $2,000.

RELATED PARTY AND FORMER OFFICERS NOTES PAYABLE

12 Months Ended

Dec. 31, 2016

The former Chief Operating Officer has a notes payable balance totaling $450,000 at December 31, 2015. The loan bears interest at 5.5% per annum and was initially due December 31, 2002 and have been mutually extended. Under the terms of the note extension dated December 12, 2007, the loan bears interest at 5% per annum and are now due. On December 31, 2016, the Company wrote off the entire $450,000 balance of the note payable and $312,500 of interest accrued, thereupon. The Company therefore recognized a gain on forgiveness of debt in the amount of $762,500.

On November 10, 2016, the Company, via Imagion, its wholly-owned subsidiary, entered into a Note Purchase Agreement with Interim Investors, pursuant to which Imagion would issue promissory notes for any amounts borrowed under the Agreement. The Interim Investors may invest up to a total of $500,000 under the Note Purchase Agreement. The Note accrue interest at the rate of 8% per annum, provided, however, in the event of a default, interest shall accrue at 10% per annum. As of December 31, 2016, the Company borrowed a total of $275,000. Interest expense and accrued interest during the year ended December 31, 2016 was $2,000.