6. Note Receivable

9 Months Ended

Sep. 30, 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 April 7, 2015, a settlement was signed and the note receivable was settled for $537,500. The agreement calls for 7 quarterly payments of $30,000 after the April 15, 2015 payment, with the remaining balance of $297,500 being due in full on January 15, 2017. The Company received the first and second payments on April 15, 2015 and July 15, 2015. Blackwatch failed to pay the amount that was due and payable under Paragraph 2a of the Agreement on October 15, 2015. Written notice of default was sent to Blackwatch on November 4th and Lattice shall exercise all of its rights and pursue all of its remedies against Blackwatch as set forth in the Agreement.