Note 9 - Subscription Receivable - Affiliates

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subscription Receivable [Text Block]

9.

     SUBSCRIPTION RECEIVABLE - AFFILIATES:

As of

September 30, 2019,

the Company has

three

interest bearing, secured promissory notes with an aggregate principal amount of

$428,250

(

$453,445,

including interest), from Bassani as consideration to purchase warrants to purchase

5,565,000

shares of the Company’s restricted common stock, which warrants have exercise prices ranging from

$0.60

to

$1.00

and have expiry dates ranging from

December 31, 2020

to

December 31, 2025.

The promissory notes bear interest at

4%

per annum, are secured by portions of Bassani’s

January 2015

Convertible Note and Bassani’s

September 2015

Convertible Notes. The secured promissory notes are payable

July 1, 2020.

As of

September 30, 2019,

the Company has

two

interest bearing, secured promissory notes with an aggregate principal amount of

$46,400

(

$49,914

including interest) from

two

former employees as consideration to purchase warrants to purchase

928,000

shares of the Company’s restricted common stock, which warrants are exercisable at

$0.75

and have expiry dates of

December 31, 2020.

These warrants have a

90%

exercise bonus. The promissory notes bear interest at

4%

per annum, are secured by a perfected security interest in the warrants, and are payable on

July 1, 2020.

As of

September 30, 2019,

the Company has an interest bearing, secured promissory note for

$30,000

(

$31,394

including interest) from Smith as consideration to purchase warrants to purchase

300,000

shares of the Company’s restricted common stock, which warrants are exercisable at

$0.60

and have expiry dates of

December 31, 2023.

The warrants have a

75%

exercise bonus. The promissory note bears interest at

4%

per annum, is secured by

$30,000

of Smith’s

January 2015

Convertible Note. The secured promissory note is payable on

July 1, 2020.