NOTE 2 - NOTES PAYABLE

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

NOTE 2 - NOTES PAYABLE

NOTE 2 - NOTES PAYABLE 

Notes payable at December 31, 2018 consist of the following:
Unsecured note payable to a shareholder bearing 8% interest.
Entire balance of principal and unpaid interest due on demand	$	124,230
Unsecured note payable to a shareholder bearing 10% interest
Entire balance of principal and unpaid interest due on demand	$	649,049
Promissory notes	$	600,000
Notes Payable - related party	$	150,000
Total notes	$	1,523,279
2019	$	1,523,279
2020	$	-0-
2021	$	-0-
2022	$	-0-
2023	$	-0-
	$	1,523,279

We issued promissory notes in the amount of $290,000 during the year ended December 31, 2017. The promissory notes carry a 6% annual interest rate. All of the promissory notes had reached their maturity date and extension agreements have been signed for all of the $750,000 in notes. None of the notes are convertible to common stock. The holders of the promissory notes shall receive repayment in the full face amount of the note from the initial $750,000 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. $150,000 of these notes are with related parties. The CEO has a note payable in the amount of $50,000 and a director has a $25,000 note. The remaining $75,000 note is held by a related party to the Company.