6. Note Receivable

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Note Receivable

As part of the sale of Lattice Government assets on April 2, 2013, the Company received a promissory note from Blackwatch International, Inc. for $700,000, which carried a 3% annual interest rate payable in 12 equal quarterly installments of $61,216 over a 3 year period. The first installment was due July 31, 2013 and each successive payment was due on the 15^th day of the month following close of each quarter. Blackwatch never made these payments; therefore, the Company filed a lawsuit in the Superior Court of New Jersey to collect the monies. On March 26, 2015, a verbal settlement was reached on a revised note receivable for $575,000 to be payable in 7 quarterly payments of $30,000 beginning on April 15, 2015, with the remaining balance of $335,000 being due in full on January 15, 2017. Previously, the note settlement was estimated at $575,000 based on preliminary negotiations. On April 7, 2015, the settlement was signed and the note receivable was settled for $537,750 ($37,250 lower than the previously estimated). The agreement calls for 7 quarterly payments of $30,000 after the April 15, 2015 payment, with the remaining balance of $297,750 being due in full on January 15, 2017. The Company received the first payment of $30,000 on April 15, 2015.