• Filing Date: 2013-04-12
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.6
NOTES RECEIVABLE
12 Months Ended
Dec. 31, 2012
NOTES RECEIVABLE  
NOTES RECEIVABLE

NOTE 7 – NOTES RECEIVABLE

 

Notes Receivable – Related Party

 

The following is a summary of amounts due from related parties, including accrued interest separately recorded, as of December 31, 2012:

 

Related party

Nature of relationship

Terms of the agreement

Principal amount

Accrued Interest

 

 

 

 

 

Secure eHealth

 

Secure eHealth was a 100% owned

subsidiary of the Company until

December 2011. (see Note 5) Scott

Haire is the managing member of S

ecure eHealth.

Unsecured line of credit

1% interest, due on demand.

$    293,233

$2,232

 

 

 

 

 

Commercial Holding, AG

 

Commercial Holding AG, LLC has

provided previous lines of credit

to affiliates of WMT.

Unsecured note with interest

accrued at rate of 10% per

annum, due on demand.

     200,000

 

 

33,667

 

 

 

 

 

MAH Holding, LLC

 

MAH Holding, LLC has provided

previous lines of credit to affiliates

of WMT.

Unsecured note with interest

accrued at 10% per annum,

due on demand.

  0

0

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

(493,233)

(35,899)

TOTAL

 

 

$0

$0

 

The following is a summary of amounts due from related parties, including accrued interest separately recorded, as of December 31, 2011:

 

Related party

Nature of relationship

Terms of the agreement

Principal amount

Accrued Interest

 

 

 

 

 

Secure

eHealth

 

Secure eHealth was a 100% owned

subsidiary of the Company until

December 2011. (see Note 5) Scott

Haire is the managing member of

Secure eHealth.

Unsecured line of credit 0%

interest, due on demand.

$    293,233

$0

 

 

 

 

 

Commercial

Holding, AG

 

Commercial Holding AG, LLC has

provided previous lines of credit

to affiliates of WMT.

Unsecured note with interest

accrued at rate of 10% per

annum, due on demand.

     500,000

 

 

8,472

 

 

 

 

 

MAH

Holding, LLC

 

MAH Holding, LLC has provided

previous lines of credit to affiliates

of WMT.

Unsecured note with interest

accrued at 10% per annum,

due on demand.

  166,216

113,618

 

TOTAL

 

 

$959,449

$122,090

 

 

Notes Receivable

 

The following is a summary of amounts due from unrelated parties, including accrued interest separately recorded, as of December 31, 2012:

 

Note Receivable

Terms of the agreement

Principal

amount

Accrued

Interest

Private Access

Convertible note receivable which

accrues interest at 9% per annum,

maturity date of July 31, 2013.

$1,500,000

$548,048

 

 

 

 

June 21, 2011 Notes Receivable

Five $50,000 5% secured notes, with

the same unrelated party received as

part of the June 21, 2011 note payable

and warrant purchase agreement (see

note 8) due 49 months from initial funding.

-

-

 

 

 

 

 

Allowance for Doubtful Accounts

(1,500,000)

(548,048)

Total

 

$0

$0

 

The Private Access Note is with an unrelated company and the loan of $1,500,000 accrues interest at 9% per annum from the day of purchase to the maturity date of July 31, 2013.  As of December 31, 2012 the Company has accrued $548,048 of interest and has established an allowance for this same amount.  According to the terms of the Assignment and Assumption Agreement between VHGI, Private Access, Inc. (“Private Access”) and the Company, VHGI assigned all rights, title and interest in the Private Access Note, including the right to serve as collateral agent for the collateral pledged as security by Private Access, to the Company.  Under the terms of the Security Agreement dated August 3, 2009, which was assigned to the Company by VHGI, the Company, along with othe r investors, holds pro rata security interests in all property of Private Access including its intellectual property.

 

The  Company received five $50,000 secured notes, with the same unrelated party as part of the June 21, 2011 note payable and warrant purchase agreement (see note 8) for a total note receivable balance of $250,000.  On April 25, 2012, the note holder elected to offset the $250,000 notes receivable and $10,729 in accrued interest receivable against the related note payable and accrued interest payable.  Following the offset, the balance of the five secured notes receivable and the related accrued interest is zero.

 

 

The following is a summary of amounts due from unrelated parties, including accrued interest separately recorded, as of December 31, 2011:

 

Note Receivable

Terms of the agreement

Principal

amount

Accrued

Interest

Private Access

Convertible note receivable which

accrues interest at 9% per annum,

maturity date of July 31, 2013.

$1,500,000

$413,048

 

 

 

 

June 21, 2011 Notes Receivable

Five $50,000 5% secured notes, with

the same unrelated party received as

part of the June 21, 2011 note payable

and warrant purchase agreement (see

note 8) due 49 months from initial funding.

250,000

7,431

 

 

 

 

Total

 

$1,750,000

$420,479