Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Concentration of credit risk

Note 12 - Concentration of credit risk	9 Months Ended
Sep. 30, 2019
Notes
Note 12 - Concentration of credit risk	Note 12 - Concentration of credit risk The Company had a significant portion of its assets invested in G Farma entities, which assets have now been impaired. These investments included the notes receivable and the intended 3.843% equity in G Farma Equity Entities described in Note 8, and the finance leases receivable described in Note 9. At September 30, 2019, after the bad debt reserve described in Note 9 and the asset impairments described in Notes 8, 9, and 11, these assets represent 6% of the consolidated total assets of the Company. At December 31, 2018, these assets represented 27% of the consolidated total assets of the Company. The Company closely monitors each investment based on known and inherent risks in our investments which include financial results, satisfying scheduled payments and compliance with financial covenants, adverse situations that may affect the borrowers ability to repay, estimated value of underlying collateral and current economic conditions. The events described in Notes 1, 8, 9, and 11, led the Company to record a bad debt reserve against finance leases receivable of $752,148 at September 30, 2019. For the three and nine month periods ended September 30, 2019, $1,084 and $730,469, respectively of bad debt expense related to the finance leases receivable, is included in selling, general and administrative expenses in the condensed consolidated income statements. Included in the receivable and bad debt reserve is an additional $21,679 which is unlikely of collections and therefore was not recognized as revenue or as bad debt expense. These same events, led the Company to fully impair G Farma notes receivable of $1,045,051, fully impair the $600,002 contractual interest in G Farmas legal recovery, and fully impair the Companys 3.843% equity interest in G Farma Equity Entities, formerly valued at $41,600. Total impairments related to the G Farma investments, recorded at September 30, 2019, are $1,688,825 of which $0 and $1,688,825, respectively, are included in Gain (loss) in investments in the condensed consolidated income statements for the three months and nine ended September 30, 2019. No impairments or reserves were recorded at December 31, 2018.

Note 12 - Concentration of credit risk

9 Months Ended

Sep. 30, 2019

Note 12 - Concentration of credit risk

The Company had a significant portion of its assets invested in G Farma entities, which assets have now been impaired. These investments included the notes receivable and the intended 3.843% equity in G Farma Equity Entities described in Note 8, and the finance leases receivable described in Note 9. At September 30, 2019, after the bad debt reserve described in Note 9 and the asset impairments described in Notes 8, 9, and 11, these assets represent 6% of the consolidated total assets of the Company. At December 31, 2018, these assets represented 27% of the consolidated total assets of the Company.

The Company closely monitors each investment based on known and inherent risks in our investments which include financial results, satisfying scheduled payments and compliance with financial covenants, adverse situations that may affect the borrowers ability to repay, estimated value of underlying collateral and current economic conditions.

The events described in Notes 1, 8, 9, and 11, led the Company to record a bad debt reserve against finance leases receivable of $752,148 at September 30, 2019. For the three and nine month periods ended September 30, 2019, $1,084 and $730,469, respectively of bad debt expense related to the finance leases receivable, is included in selling, general and administrative expenses in the condensed consolidated income statements. Included in the receivable and bad debt reserve is an additional $21,679 which is unlikely of collections and therefore was not recognized as revenue or as bad debt expense.

These same events, led the Company to fully impair G Farma notes receivable of $1,045,051, fully impair the $600,002 contractual interest in G Farmas legal recovery, and fully impair the Companys 3.843% equity interest in G Farma Equity Entities, formerly valued at $41,600. Total impairments related to the G Farma investments, recorded at September 30, 2019, are $1,688,825 of which $0 and $1,688,825, respectively, are included in Gain (loss) in investments in the condensed consolidated income statements for the three months and nine ended September 30, 2019. No impairments or reserves were recorded at December 31, 2018.