Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Bhang Corporation (formerly known as Bhang Chocolate Company, Inc.) and Judgment

v3.10.0.1
Note 5 - Bhang Corporation (formerly known as Bhang Chocolate Company, Inc.) and Judgment
6 Months Ended
Jun. 30, 2018
Notes  
Note 5 - Bhang Corporation (formerly known as Bhang Chocolate Company, Inc.) and Judgment

Note 5 - Bhang Corporation (formerly known as Bhang Chocolate Company, Inc.) and Judgment

 

The Company entered into an agreement with Bhang Chocolate Company, Inc., the predecessor in interest to Bhang Corporation (together “Bhang”), effective February 28, 2014. As part of that agreement, which was ultimately rescinded, Mentor delivered $1,500,000 to Bhang which Bhang refused to return following rescission of the agreement. Following arbitration of the dispute, on December 29, 2016, Mentor obtained a judgment in the amount of $1,921,534 against Bhang Corporation and its predecessor in interest, Bhang Chocolate Company, Inc., in the United States District Court for the Northern District of California. The judgment accrued interest at the rate of 10% from December 29, 2016 until November 20, 2017, when the parties stipulated to payment terms.

 

On January 23, 2018, the Company received a net payment of $1,758,949 in satisfaction of the judgment and 117,000 shares of Mentor common stock, originally sold to two Bhang shareholders, were returned to Mentor in exchange for a payment of $286,719 to the two Bhang shareholders, which was offset from the judgment of $2,045,668. Receipt of Common Stock returned by the Bhang shareholders was accounted for as a reduction of outstanding Common Stock and reduction to the Receivable from Bhang Chocolate Company by the original purchase price of $228,150 upon their receipt by Mentor in January 2018.

 

The receivable and accrued interest consisted of the following:

 

 

 

June 30,

2018

 

December 31,

2017

Receivable from Bhang Chocolate Company

$

 -

$

1,500,000

Accrued interest

 

-

 

540,521

Reimbursed costs

 

-

 

5,147

Sub-total

 

-

 

2,045,668

Reserve pending collection efforts

 

-

 

 -

Interest payable to Bhang owners

 

-

 

(58,569)

Receivable from Bhang Chocolate Company

 

-

 

1,987,099

Current portion

 

-

 

(1,987,099)

Long term portion

$

 -

$

-