NOTE 18 – COMMITMENTS

Patent license payable

As part of the formation of the Company, a patent license was transferred to the Company. The original license began in 2006. Under the terms of the license the Company agreed to pay $10,000 per year through 2015 and royalties of 2% on any revenues resulting from the license. The license expired in February 2016. There were no revenues generated by this license. The remaining obligation of $20,000 as of December 31, 2020 and 2019, is recorded as a part of accounts payable on the consolidated balance sheets.

Employee settlement

As of December 31, 2020 and 2019, the Company owed a former employee a severance settlement payable in the amount of $50,000 for accrued vacation benefits. As part of the severance settlement, a stock option previously granted to the former employee was fully vested and extended.