Note 6 - Trademark and Patents
Trademark and patents, stated at cost, less accumulated amortization consisted of the following:
| | | | | | |
| | December 31, | | June 30, |
| | 2021 | | 2021 |
Trademarks and Patents | | $ | 458,954 | | $ | 458,954 |
Less Accumulated Amortization | | | (115,038) | | | (108,836) |
Trademarks and Patents, Net | | $ | 343,916 | | $ | 350,118 |
Amortization expense amounted to approximately $2,067 and $2,067 for the three months ended March 31, 2022 and 2021, respectively, and for the nine months ended March 31, 2022 and 2021 were approximately $6,202 and $6,202, respectively.
Note 7 – Loan Payable
The Company financed its Directors and Officers liability insurance policies through BankDirect for the periods January 1, 2022 to December 31, 2022, and January 1, 2021 to December 31, 2021. The original loan balances as of January 1, 2022, and January 1, 2021 was $234,198, and $235,476, respectively, payable at the rate of $23,932 and $24,062 monthly including interest at an annual rate of 4.74% and 5% respectively, through October of each year. At March 31, 2022 and June 30, 2021, the loan balance was $164,905, and $95,306, respectively. For the three and nine months ended March 31, 2022, the Company incurred interest expense of $2,502 and $3,445, respectively. For the three and nine months ended March 31, 2021, the Company incurred interest expense of $2,516 and $3,282, respectively.
Note 8 - Equity Transactions
On September 9, 2021, the Company entered into a COVID-19 License Agreement to use, promote, offer for sale, import, export, sell and distribute drugs that treat Covid-19 infections, using TheraCour’s proprietary as well as patented technology and intellectual property. Pursuant to such license agreement, the Board of Directors authorized the issuance of 100,000 fully vested shares of the Company’s Series A preferred stock as a license milestone payment and recorded an expense of $0 and $935,088 for the three and nine months ended March 31, 2022.
On September 14, 2021, the Board of Directors and Dr. Anil Diwan, President and Chairman of the Board agreed to the extension of Dr. Diwan’s employment agreement for a period of one year from July 1, 2021 through June 30, 2022 under the same general terms and conditions. The Company granted Dr. Diwan an award of 10,204 shares of the Company’s Series A preferred stock. The shares shall be vested in quarterly installments of 2,551 shares on September 30, 2021, December 31, 2021, March 31, 2022 and June 30, 2022 and are subject to forfeiture. The Company recognized non-cash compensation expense related to the issuance of the Series A preferred stock of $27,246 and $81,738 for the three and nine months ended March 31, 2022, respectively. The balance of $27,244 will be recognized as the remaining 2,551 shares vest and service is rendered for the year ended June 30, 2022.
For the three and nine months ended March 31, 2022, the Company’s Board of Directors authorized the issuance of 1,727 and 2,501, respectively of fully vested shares of its Series A preferred stock for employee compensation. The Company recorded expense of $12,155 and $23,920, respectively for the three and nine months ended March 31, 2022 related to these issuances.