Debt

6 Months Ended

Jun. 30, 2020

Notes Payable [Abstract]

Debt

7. DEBT

As of June 30, 2020 and December 31, 2019, the balance was as follows:

	June 30, 2020		December 31, 2019
Notes payable	$	10,416,176	$	12,352,189

During the six-month period ended June 30, 2020, there have been 10 additional convertible-promissory notes totaling $547,360. There have been 53 convertible-promissory notes totaling $3,727,213 converted to 39,652,283 shares of common stock. 

On April 23, 2020, the Company’s wholly owned subsidiary, Pharmacy Value Management Solutions, Inc. (‘PVMS”) received a loan in the principal amount of $1,243,840 from Mechanics Bank (the “Bank”) pursuant to the PPP. On May 22, 2020, the Bank notified PVMS that the loan was in default as a result of false statements made in the loan application. PVMS disputes the Bank’s claim and believes that it made no false statements in its PPP loan application. The statements relate to the number of employees and the monthly payroll amounts. As a result, PVMS’ account with Mechanics Bank has been frozen with a balance of $845,340. Both PVMS and the Bank are seeking guidance from the Small Business Administration as to how to resolve this dispute. Until resolved, it is likely that this account will remain frozen.

Break-out of debt between the parent company and our subsidiary PVMS is as follows:

	June 30, 2020		December 31, 2019
Advanzeon parent	$	3,381,163	$	5,010,016
PVMS		7,035,013		7,342,173
	$	10,416,176	$	12,352,189

At Advanzeon, the total notes issued year-to-date and their dollar values were as follows:

	June 30, 2020		December 31, 2019
Number of notes issued		2		—
Dollar value	$	165,360	$	—

All debts issued during the six-month period ended June 30, 2020 are short-term in nature and have a stated interest rate of 10%.

At PVMS, the total of notes issued year-to-date and their dollar values were as follows:

	June 30, 2020		December 31, 2019
Number of notes issued		8		51
Dollar value	$	382,000	$	2,289,250

All debt is short-term in nature, one-year maturity date. All debt issued has a stated interest rate of 12%.