INSURANCE AND LEGAL SETTLEMENTS AND GAIN ON FORGIVENESS OF DEBT

12 Months Ended

Dec. 31, 2017

Insurance And Legal Settlements And Gain On Forgiveness Of Debt

INSURANCE AND LEGAL SETTLEMENTS AND GAIN ON FORGIVENESS OF DEBT

Note 13 INSURANCE AND LEGAL SETTLEMENTS AND GAIN ON FORGIVENESS OF DEBT

Legal settlements were as follows:

	2017			2016			2015
Embezzlement claim (1)	$	—		$	224,900		$	—
Auditor claim (2)		—			125,000			—
Miscellaneous		(17,031	)		(10,000	)		—
Total debt	$	(17,031	)	$	339,900		$	—

(1) Embezzlement claim was a payment from an insurance company on the fraud portion of our policy for theft from a former employee

(2) Auditor claim was a payment from prior auditors who did not sufficiently audit accounts of our prior ASO business.

Gain on Forgiveness of debt by year follows below:

	2017		2016		2015
Gain on forgiveness of debt	$	—	$	—	$	773,402

During 2015, the Company reached an agreement with a prior creditor whereby they would forgive indebtedness of $773,402 in lieu of a share of a revenue stream on certain sales from our PVMS subsidiary. To date, payments to this creditor under this arrangement have been minimal. Payments will be included as cost of goods sold.