CONTINGENT LIABILITY

9 Months Ended

Sep. 30, 2018

Contingent Liability

CONTINGENT LIABILITY

7. CONTINGENT LIABILITY

Contingent Liability consisted of 3 items:

1) a lawsuit by the son of a deceased promissory note holder in the amount of $450,000. The son’s actions have been dismissed by the court 2 previous times.

2) interest payable to the same person listed in (1) in the amount of $171,247

3) Advanzeon won a decision on a court case against Universal Healthcare. The attorney’s fees relating to this matter total $21,412. This fee will be paid out of the proceeds of the case when collected.

As of September 30, 2018 and December 31, 2017, the balance of this indebtedness is as follows:

	September 30, 2018		December 31, 2017
Legal settlement payable	$	—	$	39,995
Disputed note payable		450,000		450,000
Disputed interest payable		171,247		—
Pending attorney fees		21,412		—
Total Contingent Liability	$	642,659	$	489,995

In 2018, we have reclassified the Legal Settlement Payable of $39,995 to Accounts Payable.