| Schedule of convertible notes receivable |
Convertible
notes receivable consists of the following:
Schedule
of convertible notes receivable
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September 30,
2021
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December 31,
2020
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| November 22, 2017, NeuCourt, Inc. convertible note receivable including accrued interest of $2,438 and $1,454 at September 30, 2021 and December 31, 2020. The note bears interest at 5% per annum, originally matured November 22, 2019, and was extended to mature November 22, 2021. Principal and accrued interest are due at maturity. Upon extension, the Company received a cash payment of $2,496 for interest accrued through November 4, 2019. Principal and unpaid interest may be converted into a blend of shares of a to-be-created series of Preferred Stock and Common Stock of NeuCourt (i) on closing of a future financing round of at least $ 750,000, (ii) on the election of NeuCourt on maturity of the Note, or (iii) on election of Mentor following NeuCourt’s election to prepay the Note. * |
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$ |
27,102 |
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$ |
26,454 |
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| October 31, 2018, NeuCourt, Inc. convertible note receivable including accrued interest of $7,650 and $5,584 at September 30, 2021 and December 31, 2020. The note bears interest at 5% per annum and matures October 31, 2022. Principal and accrued interest are due at maturity. Principal and unpaid interest may be converted into a blend of shares of a to-be-created series of Preferred Stock and Common Stock of NeuCourt (i) on closing of a future financing round of at least $750,000, (ii) on the election of NeuCourt on the maturity of the Note, or (iii) on the election of Mentor following NeuCourt’s election to prepay the Note. * |
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57,985 |
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55,584 |
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| Total convertible notes receivable |
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85,087 |
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82,038 |
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| Less current portion |
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(27,102 |
) |
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(26,454 |
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| Long term portion |
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$ |
57,985 |
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$ |
55,584 |
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| * |
The
Conversion Price for each Note is the lower of (i) 75% of the price paid in the Next Equity Financing, or the price obtained by dividing
a $3,000,000 valuation cap by the fully diluted number of shares. The number of Conversion Shares issued on conversion shall be the
quotient obtained by dividing the outstanding principal and unpaid accrued interest on a Note to be converted on the date of conversion
by the Conversion Price (the “Total Number of Shares”), The Total Number of Shares shall consist of Preferred Stock and
Common Stock as follows: (i) That number of shares of Preferred Stock obtained by dividing (a) the principal amount of each Note
and all accrued and unpaid interest thereunder by (b) the price per share paid by other purchasers of Preferred Stock in the Next
Equity Financing (such number of shares, the “Number of Preferred Stock”) and (ii) that number of shares of Common Stock
equal to the Total Number of Shares minus the Number of Preferred Stock. Using the valuation cap of $3,000,000, the November 22,
2017 Note would convert into 102,435 Conversion Shares and the October 31, 2018 Note would convert into 215,228 Conversion Shares
at September 30, 2021. In the event of a Corporate Transaction prior to repayment or conversion of the Note, the Company shall receive
back two times the outstanding principal on the Note, plus all accrued unpaid interest. |
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