Annual report pursuant to Section 13 and 15(d)

Convertible note receivable

Convertible note receivable
12 Months Ended
Dec. 31, 2015
Convertible note receivable Text Block:  
Convertible note receivable

Note 7 – Convertible note receivable


The Company advanced $100,000 to Electrum Partners, LLC (Electrum) as a convertible note receivable on March 12, 2014. Accrued interest of $7,772 and $4,942 is included in the convertible note receivable balance at December 31, 2015 and 2014, respectively. The note bore interest at 5% per annum, compounded monthly for the period from March 12, 2014 to September 12, 2015, at which point the interest increased to 10% annual interest, compounded monthly until maturity or until it is converted to shares of equity in Electrum. There were no payments required under the note for the period from March 12, 2014 to October 12, 2015; from October 12, 2015 to March 12, 2017 interest only payments are required; and from March 12, 2017 through March 12, 2022 payments of principal and interest in the amount of $2,289.83 are required. Mentor has the option to convert the note plus any accrued interest or fees into shares of equity in Electrum at any time prior to its maturity.