Funding agreement with MicroCannaBiz, LLC, conversion to note receivable and subsequent write-off
|12 Months Ended|
Dec. 31, 2015
|Funding agreement with MicroCannaBiz, LLC, conversion to note receivable and subsequent write-off:|
|Funding agreement with MicroCannaBiz, LLC, conversion to note receivable and subsequent write-off||
Note 11 - Funding agreement with MicroCannaBiz, LLC, conversion to note receivable and subsequent write-off
The Company entered into a co-operative funding agreement with MCB that closed on February 18, 2014, to purchase up to a 51% interest in MCB. MCB provides cannabis and marijuana related private companies, investors and microcap issuers with information resources including client company specific publications, directories, and continuing education courses. MCB was to receive up to $200,000 in funding as Mentor received proceeds from warrant exercises. Allocation of funding to MCB was discretionary and could be reduced to $100,000 with no change in Mentors ownership if Mentor was dissatisfied with MCB performance. On April 13, 2015 Mentor notified MCB that the funding would be reduced to $100,000. The Company had the right, in its sole discretion, to convert the paid portion of the $100,000 equity investment in MCB to a six percent (6%) ten-year note payable to Mentor by the remaining owner of MCB in 120 equal payments of principal and interest at any time. If triggered, this provision would truncate further funding. On April 27, 2015, Mentor notified MCB that $74,000 of funding previously paid to MCB would be converted to a ten year note receivable and further funding was truncated. This conversion resulted in a gain of $35,360 in the 2nd quarter of 2015. Subsequently, the Company evaluated the inability to collect the note receivable and, as a result, the $74,000 note was impaired in its entirety in the 4th quarter of 2015 along with $2,010 of accrued and unpaid interest on the note.
Upon conversion of the funding agreement to a note receivable the assets and liabilities of MCB were deconsolidated from the consolidated financial statements as follows:
The entire disclosure is about the Company's Funding agreement with MCB
No definition available.