NOTE 12 - SUBSEQUENT EVENTS
|6 Months Ended|
Jun. 30, 2020
|NOTE 12 - SUBSEQUENT EVENTS||
NOTE 12 SUBSEQUENT EVENTS
Loan Payable - Related Party
From July 1, 2020 through the date of this filing, HEP Investments LLC funded an additional $20,000. This amount was recorded as Loan Payable, Related Party.
Deferred Revenue - Participation Agreement
From July 1, 2020 through the date of this filing, the Company entered into a License Co-Development Participation Agreement (Agreement) for $100,000. The Agreement provides for, among other items, the partner (the Participant) to participate in the fees (the Fees) from licensing or selling bioactive ingredients or molecules derived from the Companys algae cultures. Based upon the agreement signed to date, the Company will issue to the Participant warrants with a five-year term to purchase 300,000 shares of the Companys common stock at an exercise price of $0.12 per share and provide to the Participant a 1.50% Revenue Share of all license fees generated by ZIVO from any Licensee.
The Agreement allows the Company the Option to buy back the right, title and interest in the Revenue Share for an amount equal to the amount funded plus a forty percent (40%) premium, if the Option is exercised in less than 18 months, or fifty percent (50%), if the Option is exercised after 18 months. Pursuant to the terms of both Agreements, the Company may not exercise its Option until it has paid the Participant a revenue share equal to a minimum of thirty percent (30%) of the amount initially funded. Once this minimum threshold is met, the Company may exercise its Option by delivering written notice to the Participant of its intent to exercise the Option, along with repayment terms of the amount funded, which may be paid, in the Companys sole discretion, in one lump sum or in four (4) equal quarterly payments. If the Company does not make such quarterly payments timely for any quarter, then the Company shall pay the prorate Revenue Share amount, retroactive on the entire remaining balance owed, that would have been earned during such quarter until the default payments have been made and the payment schedule is no longer in default.
Financial Consulting Agreement
On July 16, 2020, the Company entered into an Advisory Agreement (Agreement). The Agreement calls for monthly fees of $10,000 per month. The Agreement is on a month to month renewal basis. Upon each renewal (starting with the second month), the Company shall issue a warrant to purchase 150,000 shares of common stock at an exercise price of $.12 for a term of five years.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef