NOTE 3 - NOTES PAYABLE

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

NOTE 3 - NOTES PAYABLE

NOTE 3 - NOTES PAYABLE 

Notes payable at September 30, 2018 consist of the following:
Entire balance of principal and unpaid interest due on demand	$	124,230
Entire balance of principal and unpaid interest due on demand	$	649,049
Promissory notes	$	700,000
Notes Payable - related party	$	50,000
Total notes	$	1,523,279
2018	$	773,279
2019	$	750,000
2020	$	-0-
2021	$	-0-
2022	$	-0-
	$	1,523,279

The promissory notes and note payable related party carry a 6% annual interest rate and are payable upon the earlier of (a) 24 months from the date of the promissory note or (b) the Company reaching a settlement(s) on a patent infringement claim(s) and receiving an aggregate of at least $2 million net proceeds from such settlement(s). The holders of the promissory notes shall receive repayment in the full face amount of the note from the initial $500,000 the Company actually receives from the net proceeds of its patent infringement claim(s) or from the net proceeds of a public offering. In addition the holder shall receive a preferred return (i) in an amount equal to up to 200% of the initial face amount of the note out of available cash by sharing with all other investors in this series of notes in the allocation of 50% of the available cash received by the Company from $2M - $4M and (ii) in an amount equal to up to 100% of the initial face amount of the note out of available cash by sharing with all other investors in this series of notes in the allocation of 25% of the available cash received by the Company from $4M - $6M. In other words, if the Company collects $6M in the net proceeds of available cash, the holder will receive a return equal to 400% of its investment. All of the promissory notes had reached their maturity date and extension agreements have been signed for all of the $750,000 in notes.