Contingent Liability

3 Months Ended

Mar. 31, 2020

Contingent Liability

CONTINGENT LIABILITY

8. CONTINGENT LIABILITY

Contingent liability consisted of 3 items:

1. A lawsuit against the Company for $450,000 from the son of a deceased promissory note holder. This matter has been dismissed twice by the judge but is ongoing due to appeals. This case is anticipated to expire in June or July for lack of prosecution.

2. Interest payable in the amount of $171,247 to the same person listed in (1). This interest is related to the lawsuit referenced in (1).

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 March 31, 2020 and December 31, 2019, the balance of this indebtedness is as follows:

	March 31, 2020		December 31, 2019
Disputed note payable	$	450,000	$	450,000
Disputed interest payable		171,247		171,247
Pending attorney fees		21,412		21,412
Total contingent liability	$	642,659	$	642,659